©2011 Johnny Domawa
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There are a few subjects in college that we considered boring and downright unwelcome because (1) We don’t know how it will affect us (2) It seems pointless; (3) It is superhard; (4) the teachers are the most boring. We enter these classes because it is a course requirement but deep inside we hated them and hoped they were never part of our lives.
One such subject is economics. It has something to do with money and numbers and interest rates that made our brains whirl with agony. It looks quite simple initially, with its principals, interest rates, payback period and depreciations but as we delved deeper into its subject matter, most of us became overwhelmed by the strange concepts and we bleed our minds calculating the numbers asked by our professors who seem to take joy seeing us suffer.
But Economics, despite its rather tedious(?) and difficult nature is actually one of the greatest subjects that all men should be familiar with. Why? Look around you…
Your life, in general, is governed by economic principles. Your state of living, your way of living and the material status you aspire for or live with is a direct effect of economic variables.
As of the time of this writing, the US has finally passed a bill aiming to raise their debt ceiling. It has, if you’ve noticed, caused the stock market averages to drop significantly into a historic low. Add to this, the worsening debt crisis in Europe and the uncertainty of global markets have given rise to the newest scenario of a double dip recession.
And ‘recession’ dear friends, whether originating in the US or any other western nation is something that everyone should fear. Because like it or not, we are all living in a global world where every push and pull of the market has repercussions on everybody.
A debt default by the US will affect import/export economies: both those directly or indirectly affected by US demand. When economies are hard hit, jobs will tumble; when jobs become scarce, social benefits will be strained; when social benefits are strained, it fosters social problems; and social problems brings out the worst in people.
Racism, bigotry, hate, discrimination, crime, and other social ills thrive in a bad global economy. Security both physical, mental and fiscal will be threatened…
And no one is spared from this. Not even a farmer tilling his fields in the highlands of the Cordillera or a beggar in the streets of a third world country. We are all affected, in one way or another.
One wishes of course for a much rawer time when the social/fiscal ills of one country cannot affect another this much but those times are long past. We are now globally intertwined, whether we like it or not; whether we know it or not...