A Sobering Though in These Troubled Economic Times

Many countries worldwide are facing their worst recession in many decades. World economic growth has been estimated by the IMF for 2009 to be only 0.5%, the lowest in half a century. Amidst continued fears of job losses, home foreclosures, fall in stock prices and failing banks, there is the added concern of the social and political consequences that the economic downturn might bring.

Unemployment is certainly a major social evil that will result. Surveys have shown that losing your job is doubly painful - there is the unhappiness caused by poverty as a result of the loss of income but also unhappiness as a result of social shame and loss of self-respect due to the loss of a job. The news is getting more dire by the week, with Starbucks now closely hundreds of outlets, manufacturing and steel jobs declining to add to the job losses in the financial sector.

The most sobering thought of all? In the 1928 German elections, the National Socialists polled less than 3% of the votes. In 1933, Adolf Hitler succeed in winning the Chancellorship. What happened in the interim? The great depression and a major worldwide recession. The example above was of course over-stated and I doubt that anything quite so drastic will result from the current economic downturn (which is expected to last for at least the next two years). Nevertheless, it is important to keep in mind the possible severe political consequences of economic collapse. That might be the most sobering thought of all.