Is the Economical Crisis Real?

The Picture of the world by Media

Several months ago, the mortgage crisis was announced, the message about coming poor years was quickly spreading all around the globe. The world leading economy (the US) was encountering credit problems. Then, it was rapidly followed by banks announcing bankruptcy, companies being closed, people being laid off and huge changes in prices of the raw materials, petrol, electricity etc.

Governments are announcing their action plans, xx of billions of dollars or Euros are to be poured into suddenly endangered national economies, liberalisation of trade or not, protective measures are being taken. The Global Economical Forums are being held, state representatives and other leaders are panicking. It seems like we are about to live the big depression from the 20’s again.

Throwing Money in a Garbage Bin

Information about the global crisis are spoken every day in the media, you can hear politicians and economists (and even regular people) every day on the TV or radio, you can read about it in the newspapers. People are worried, if everything being told on TV was true, we will all be unemployed soon despite the huge government spending.

Real Picture of the Global Economy

Yet, looking around myself, I do not actually see any real or massive impact. Of course, some companies are being closed down, but in fact, companies are being closed and created every day. You may argue, that even some industries are heavily threatened. Well they are, but if you look at the situation in more detail, you can either see that those industries were having problems even before the first signals of the crisis or you will see that these industries are using their resources quite ineffectively and it is about time they are restructured.

The only impact I see is the fear of regular people, who are just listening to the news and do not have time or enough information to evaluate the situation correctly. There, I see the huge and even massive impact of medias which are feeding us with such catastrophic scenarios every day. These news make people scared and therefore they are putting off their consumptions, which (maybe unfortunately – from the sustainable development point of view) is the easiest solution from the crisis as it has been many times before.

Way Out of That

I am not any big fan of excessive consumption, I believe that there shall be some balance between spending and saving, but still, and I have to agree with the extremely liberal economists, that keeping investment and consumption on an appropriate level is the easiest solution. What is really needed is money to be put back into the national economies. It can be either done be people using the money they have earned or by governments, using the money of the tax payers. We know that the redistribution by the state is rarely effective, so let the people make their choices and let the top managers hold their responsibility for their wrong decisions and malpractices in the past.

I believe that half of the crisis is just hysteria of mass media and of not well educated people deciding about our future.