How Economics affects Discrimination
July 5, 2010 4 Comments
How Economics affects Discrimination
The economics of trickle-down Capitalism has proved to the world its powers to create jobs and the consequential Middle Class of the modern day society. In times of relative economic growth with short self adjusting cycles, supported by “easy” business laws and regulations, in times of supply driven markets this system performed fine by building and maintaining such industrial powers as US, Germany and Great Britain to succeed higher then everywhere else’s Standard of Life and reduction of poverty, and general liberalization by constant fight against discrimination because of color, religion or nationality; such liberalization was brought and was supported by consistent continues economic development. Thus how in the US from slavery a few Centuries ago President Obama was elected, thus how in the current German National Soccer Team some of the best players are from foreign descend; thus how London has become international Mega-polis; in this very developed economies the constant fight against any discrimination has risen people consciousness to higher levels when the economic conditions have given opportunities to people from different descend and background to succeed in life becoming productive members of their societies.
Such economic growth succeeded by the Most Developed Economies affected gradually the rest of the world by opening countries and markets to the ongoing globalization and by raising constant attention to the unacceptability of any discrimination: after the fall of the Berlin Wall and after the China entering WTO, after the succeeded economic growth and development by China, Brazil, India and many more countries around the globe the acceptance of any discrimination as something normal has become less and less tolerable. It also became obvious that discrimination works against economic growth on a pure practical level by creating poor market conditions by destabilizing these markets by the resistance of the oppressed and by the resistance of the societies of the Most Developed Economies to accept import from places and countries that tolerate discrimination on their territories. It is obvious from economic stand point that for any countries to develop its economy a open border trade policies from the Most Developed Economies is needed from one side access to high technologies in manufacturing and from another side access to their markets are paramount. Thus the global processes of liberalization of countries and reduction of discrimination are most definitely to continue.
However, the Great Recession of the 21st Century had a very negative effect on the ongoing liberalization and the consequential reduction of discrimination of many countries. Because of the economic stagnation: lack of Fiscal reserves and fast shrinking National budgets the minorities that usually are in the bottom of these countries economies were greatly affected bringing waves of national sentiments to the majorities of these impoverished nations: from North to South from Easter Europe to East to West in countries like Rumania, Bulgaria, Spain, and Ireland there have been less patience toward minorities and immigrants, even in countries like Nederland and Great Britain immigrants were becoming less tolerated by law or by the societies as a whole. The economic crisis has shown to people how negative effect economic conditions could have on the general liberalization from excessive nationalism and xenophobia, and even to turn back many succeeded already liberties and ante-discrimination practices: such an example are the open employment policies that numbers were either reduced or totally dismantled by many countries in the conditions of this economic dismay, other example are the financial policies for when before the Great Recession fiscal shortages were much more tolerable and the inter-financial system in European Union worked very smoothly in time of economic growth with the change provoked by the recession such fiscal shortages exampled by Greece, Ireland, Poland and Portugal have become intolerable, thus even when the European Union established a Fund to help these countries in case of major default the accent was not their development or growth but their fiscal discipline by reducing substantially their budgets, and because the minorities and immigrants elsewhere are always on the bottom of these societies the prompted budgetary cuts first and at most affected these unprivileged lower classes of minorities and immigrants.
Rome: Problem is Many Roma Possess Italian Citizenship “As Italy is bracing to expel from the country all European Union (EU) citizens that had violated basic requirements for living in the country, the interior minister has complained that unlike in France, many Roma have Italian citizenship.”
Gypsies and immigrants, colored and any different from the majority individuals could be on religious or descend were becoming less tolerated and accepted because of the Great Recession; the economic consequences of the Great Recession of the 21st Century has turned back history by the change of ongoing at the time liberalization and acceptance of difference; economic struggle has brought back not only poverty to many minorities and immigrants, but also it has brought back excessive nationalism and xenophobia to some people that were totally away from such feelings; general unemployment and economic stagnation, difficulties to meet the ends, business reduction are affecting anyone in one way or the other reducing tolerance and philanthropy; the effect economic recessions have on individuals and whole countries is very regressive indeed.
Under the pressures of the European Union to maintain low deficit Countries as Bulgaria have cut their Medical and Social expenses to the bone depriving many from basic medical and social services where such drastic cuts have affected at its most Bulgaria’s Gypsies who even before the cuts were on the bottom of the society but after these cuts they have become so impoverished that actually such conditions were not seen maybe but in the beginning of the Last Century. The lack basic needs of food, medical help and utilities are becoming vital for them to survive: the discrimination is not into physical violence by the majority by the economic such that came as a consequence of the Great Recession, and when these hardships affects the majority of Bulgarians in one way or another the “tools” that could take the minorities out of their current situation such as education and economic development are becoming more obscure by the day.
Therefore to talk about tight budgets and fiscal restrains is synonymous of to talk about rising discrimination against minorities and immigrants.
In time of rapidly improving high technologies prompting rising productivity, fast globalization and fast industrialization of vast economies of China, India, Brazil and Vietnam the expectations of industrial development of many countries around the world may prove futile; even in most industrialized economies outsourcing of manufacturing and capital toward China may well shrink their fiscal reserves or at least reduce the size and speed of economic growth, that consequentially might devastate even farther the less developed economies fiscal reserves, that could result into rising discrimination against minorities, immigrants, and the poor overall. When at the moment industrial production adds to the majority of most economies GDP and Fiscal reserves the relation between their budgets and industrial production is direct. Such direct relation is supported and maintained by the Global Financial System of the World Bank, IMF and WTO which system works very well in time of short cyclical global economic growth but performs very poor in time of long term recessions and shortages of demand. When lending done by the Global Financial System is smooth when lend capital is returned after short recessions and helps economies revival when industrial production has generally shifted and moved away from many economies of European Union and North America and at the same time improving technologies have reduced employment even when manufacturing employment still remains their that possibly of positive effect from high interest lending is a delusion. Even farther, with the deepening fiscal shortages for many economies these economies ratings come down and they start borrowing on even higher interest rates. It is obvious that such “double jeopardy” Global Financial System may finally contribute for the impoverishment of many countries and markets and their demise instead of their economic development that lack of economic improvement will directly affect the issue of discrimination against minorities, immigrants and anyone different by somehow.
Other factor that affects discrimination is the rising energy prices: the diminishing quantities of Crude Oil, Natural Gas and other natural recourses has had devastating affect to the less developed economies by rising utility and transportation expenses when at the same time lack of industrialization has prompted their fiscal shortages, thus how many economies have lost their ability to maintain fiscal reserves and budget to deal with the lowest levels of their socio economic structure where the minorities and immigrants were. Foster Fuels are diminishing by time and these are priced on a Global marketplace therefore less developed economies deal with such rising prices much harder then the most developed economies do. Such Global stagnation does not affect only less developed economies but it most definitely affects the most developed too: rising crime, poverty, shrinking consumption and expanding emigration in process in less developed economies reduce export, industrial production supported by rising immigration the ground for intolerance against anything different is growing too.
The dangerous Global pollution levels ask for prompt action to use technologies for low emissions and maintain clean environment for the Earth to survive, but these new requirements require a lot more expenditures by all countries, and because most of renewable technologies are quite expensive and with low productivity they mostly go toward expanses then toward profitable industrial production; such technologies reduce competitiveness to even Most Developed Economies on the open global marketplace where even without it lower employment expanses in other parts are more then enough to trigger outsourcing, but the needed such expanses are totally out of reach for many less developed economies with constantly shrinking standards of life and fiscal reserves. Thus the expenses for cleaning the Earth environment will put additional pressures to the fiscal reserves and the impoverishing of minorities and immigrants will go even farther.
Putting in context all of the above a natural global growth in the conditions of currently used Global Financial System is quite improbable to reduce poverty and enhance fiscal reserves for many economies to respond in constant lack of outsourced industrial production, rising energy costs and expenditures so much needed to enhance renewable energies to protect the Earth from catastrophe. The processes of modern “post” recession very heavily alienate minorities and immigrants by establishing conditions of intolerance and xenophobia and if major changes are not adopted by the Globalizing marketplace these processes are not going to get any better.
(For more see: http://sites.google.com/site/economicsofmarket/)