I had problem with internet last night and thus I am posting my article today.
It's been almost 6 years since the global economic crisis started and the world economies are still not stable. The Dow Jones in New York stock exchange is at the level around 15.000 points which is all time high and around 1000 points above the highest level of the year 2007 when the crisis started but this index doesn't reflect truly the state of the economies. It only shows that the corporations and business listed on the stock exchange are making profits again.
Unfortunately the key to the success of the corporations to make huge profits again despite of the crisis lies in the strategy to reduce costs and they achieve it by cutting the cost of labour and firing many people. Without any doubt this is effective and we can see it clearly when looking at the figures in the financial statements from the companies but on the other hand this is a typical human way of dealing with the problems - it is a quick and short term solution without taking into consideration long term consequences of it.
And what are the long term consequences ?
If there are many people without job ( and this is the current state of the global economies ) then they have no income and they will not be able to buy the products which the corporation manufacture and try to sell the customers. In the beginning people will get their unemployment benefits and they will use their savings ( if they have any ) and thus it all will look like everything is ok. But eventually the savings and the unemployment benefits will either stop completely or they will be lesser and only enough to pay for the basic needs and then the corporations will start to bear the fruits of their short term strategy to make quick profits by reducing drastically labour costs.
This is as stupid as wanting to lose weight quickly and out of desperation the person decides to cut of his arm. If we would look only at the figures sent to us by email then we could be amazed that the person has managed to lose weight so quickly and "permanently". But if we would investigate how the person did it then we would clearly see that the person is mentally sick. And this is what our economists and the CEO-s ( chief executives ) are doing.
This is the path that we are walking now and it is just a matter of time when we will be faced with its consequences unless we do something to change it. If we don't give people income they will not be able to buy the products which the corporations manufacture and then we will have another problem and possibly another crisis. Thus there will be more and more demonstrations which always carry an element of violence and uncertainty of which way it will end up and there is also a possibility of a global war and destruction.
And thus we either give people employment or we give them income so that they can get at least their basic needs ( food, clothes, home etc. ) covered. And here there is a proposal of BIG = Basic Income Grant. It will not only help people to cover their basic needs but it will help to save the global economies from the crisis even much worse than the crisis from 2007.