As we watch the turmoil unfold across the globe, it is difficult not to feel a sense of unease. The constant headlines filled with protests, coups, and electoral upsets in countries both near and far create an environment of uncertainty. But behind the turmoil lies a common thread: economic fears and uncertainty. The global economy is experiencing a period of heightened instability, driven by growing inequality, reduced purchasing power, and anxieties about the prosperity of future generations. These concerns have the power to trigger widespread unrest and violence that knows no borders, from wealthy nations to those struggling with debt and economic woes. It is crucial for us to understand the economic roots of this global unrest and what this portends for our collective future.
I grew up in a lower, transitioning to upper, middle income situation, but did not have a happy childhood. Haven’t inherited anything ever from anyone, nor has anyone given me a large financial gift.
My father created a small electrical/mechanical engineering company that was…
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The current political landscape is marked by a wave of unrest and violence that spans nations of diverse economic standing. Recent months have seen mass protests in Kenya, where a proposed tax hike sparked casualties, kidnappings, and significant damage to the country’s Parliament building. In Bolivia, a failed coup orchestrated by a military leader cited the president’s alleged role in “impoverishing the nation” as the motivation. Across the seas in France, roadblocks organized by disenchanted farmers have propelled a significant surge in support for the far-right party, bringing once-forbidden ideology to the fringes of political influence. These events may seem disparate in their causes and circumstances but share a common thread: a widening wealth gap and lowering economic prospects for the future.
Rising inequality, diminished purchasing power and growing anxiety that the next generation will be worse off than this one are leaving a trail of political turmoil and violence worldwide — across poor and rich countries alike. https://t.co/uWc83n5H2d
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The underlying drivers of these upheavals are stark reminders that economic fears have the power to ignite global unrest. Rising inequality and attendant declines in buying power are plaguing numerous countries. For instance, in countries like Pakistan, Portugal, and Slovenia, it is the escalating cost of living that has driven citizens to protest. In other places, such as Ghana and Nigeria, grievances about monetary policy and cash shortages have brought people to the streets. These economic struggles are matched by growing anxieties about the future prosperity of upcoming generations. Across the world, citizens are coming to realize that their share of the economic pie is dwindling, leading to a tinderbox of discontent and anger.
It is crucial to recognize that unrest is no longer a local phenomenon. Global connectivity and the instant dissemination of news have transformed local issues into global rallying cries. Protests in support of both Israel and Palestine have occurred in multiple countries, highlighting the seismic impact that global events can have on local politics. Similarly, the post-pandemic era has seen the re-emergence of protests against environmental policies and labor disputes in various nations. The tremendous reach of these movements underscores that the allure of global solidarity can quickly fan the flames of unrest. Today, economic discontent in one corner of the world can swiftly ignite protests and violence in another part of the globe.
The economic causes of social unrest are multifaceted and often unpredicted. Rising food and fuel prices have historically been known to trigger unrest. These commodities are essential to every citizen’s life, and their cost increases resonate deeply. For instance, in Spain and India’s Karnataka state, farmers have protested against legislation that aims to limit their access to water for crop irrigation. In southern Ethiopia, protests over water shortages led to the loss of lives. Similar protests over land use and environmental concerns took place on the Indonesian island of Rempan. These localized yet globalized events highlight the rapid diffusion of economic discontent and its transformative power.
A closer look at the global economic landscape further underscores the gravity of the situation. Rising inequality in the United States has been shown to slow down the growth of aggregate demand by 2 to 4 percentage points of GDP annually. This chronic shortage of demand not only has significant economic costs, such as the annual loss of $500 billion, but also creates long-term damage to the economy’s potential growth. This phenomenon, known as secular stagnation, highlights the disconcerting connection between inequality and economic stagnation.
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As we read the headlines and watch the world in turmoil, it is important to remember that these events are not merely disparate outbursts of anger and dissent. They are connected by a deeper narrative of economic fear and disappointment. Understanding this global phenomenon requires a multi-faceted approach that acknowledges the intricate web of economic factors driving political unrest. The rising divide between the haves and have-nots, the sharp decline in the purchasing power of average citizens, and growing anxieties about the future are potent harbingers of global unrest. In these tumultuous times, recognizing the economic roots of political turmoil becomes a vital step towards navigating the treacherous waters ahead.
