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The world economic crisis as I see it

The world economic crisis as I see it differs from past crises in that it is based on entirely new set of conditions, due to rapid progress in the method of production. The world alarming economic difficulties of the present day has resulted into hopeless confusion of opinions among the economic experts. What I have to say is nothing new and do not pretend to be anything more than the opinion of a simple and honest man who, unburdened by any national prejudices, desires nothing but the good of humanity and harmonious peaceful sustainable place of human existence. The way I am expressing myself does not proceed neither from unwarranted self-confidence nor a belief in the infallibility of my simple intellectual conceptions of problems which in reality are very complex.

Today, with the advent of computers and Internet technology, only a fraction of the available human labor in the world is needed. Under free economic scenarios this fact is bound to lead unemployment. How many of us not seek to get well-paid jobs? But, the majority of people are compelled to work for the minimum wage on which life can be supported. The number of fall in sales and profit for the industries had led to lay-off their workers. Business has gone smash, which has further increased unemployment. More recently, in United States alone the unemployment has hit 9.8% which presumably has decreased the level of confidence in industries and banks. When a cheap labor can be outsourced to developing countries like India, Nepal and Bangladesh, why any industries will hire the high wage paid worker in their own land? This has lead to unemployment in developed world. In near Foreseeable future, will affect developing world. The crises has also been attributed to other causes which could be-

1. Over production: The production is so much great that it has exceeded the demand. (e.g. models of mobile phones) This perhaps also applies to motor-cars in the United States which has led to collapse big auto-industry such as General Motors. By the virtue of this, it is not the demand that is lacking but the power of consumers to buy the products.

2. Political insecurity: The political in security has resulted in wars. The present Afghan-war against terrorism by United States and its allies. The political instability is not only in America but everywhere. Our own country is one good example where no constitution has been written till date.

3. Heath issue: The swine flu pandemic, which has reached to level 6- highly dangerous stage for viral infection of mankind. The number of HIV and Cancer diseases spreading especially in developing world and elsewhere.

I do not want to weary the reader by enumerating further contentions. Of one thing I feel certain: this technical progress which, in itself, might relieve mankind of a great part of the labor necessary to its subsistence is the principal cause of our present day problems. The logical and simple solutions for resolving the crisis is balanced and planned economy in which the consumption and production of goods are distributed by the communities.

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