If your parents were not well qualified but were hard working carpenters, bus drivers or blue collar workers in the US 25 years ago and you are in the same profession, you are in trouble.
Nobody in the US believed that anything could go wrong…say in the 1990s. Then came Free Markets theory. The Americans loved it. Simple know call it “free markets” and these people were ready believe anything. Great. The Americans, Germans and the UK guys had no clue that about a billion people in India and China will be willing to work for US $ 1 a day and completely take over their jobs.
Till of course Brexit and Trump happened. Both the countries – US and UK – have a young population who think that the rest of the world owes them a living. Yes the rich world was flooded by cheap Asian goods – starting with textiles and semiconductor chips – but along with that went the jobs to Asia. 200 years ago India and China had about 50% of world GDP, however the US, UK and Germany cannot accept that Asia will dominate again. It just does not like that argument!
What is collapsing or has collapsed was (is) the myth that markets can regulate themselves. Markets cannot. Simmering unrest emerged, borne by fears, half-knowledge and justifiable rejection of what has gone wrong with globalization! It became an opportune time for con men and authoritarians. We now see a void that cannot be remedied by trying to fix details. USA needs a new leitmotif, a new guiding concept. The Average American has to get educated, and work hard. If the farm hardwork is outsourced to Mexicans and the coding work to Asians what will the Avg American do? Except vote Trump and hope for a ‘new new order’?
There is a growing suspicion in the US that it was dangerous to allow the economies to be determined by “financial wizards” who are incapable of foreseeing their own debacles! They just follow every fad, and then become part of the government and make rules to help their bretheren!
Look at the rules that the idiotic bankers have changed – a housing loan would be available ONLY for 50% of the cost of the house. These idiotic bankers changed the rule to 10% and percipitated the Mortgage led 2008 crisis in US.
Educational Loans make no sense MATHEMATICALLY for any kid to be borrowing. Take the case of medical education in India – it could set you back by Rs. 5 crores – at the end of a super specialist job. Are you kidding? Will a doc earn that kind of money working in a middle class locality?
Look at housing prices. Look at people replacing cars every 4 years just because finance is available. Is it sustainable? In US or in India?
If half the American and UK popluation drops out of school, has children out of wedlock, has no particular skill, will the rest of the world be responsible to give them a good life?
ha, tough questions. No simple answers.
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