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Commentary :: Economy
The Age of Austerity Dawns
The burst bubble of the New Economy should have been understood as a warning. Then as today, wishful thinking and greed blocked the view to reality. Recessions offer a period of welcome recovery. Losing the hectic turbo-capitalism is not really a great loss.
THE AGE OF AUSTERITY DAWNS
The good side in downswing phases. People live more consciously and healthy
By Jurgen Kronig
[This article published in: ZEIT Online, 10/17/2008 is translated from the German on the World Wide Web, www.zeit.de/online/2008/43/krise-ohne-depression.]
A good portion of gallows humor is necessary in these times to see the brighter side of life. Grim times are beginning. For many millions, life will be hard. The financial crisis was only the prelude. A serious recession cannot be avoided any more.
One can only hope to be spared a depression. In the United States, the unemployment figures climb. The taxpayers in Europe and America who became bank owners overnight prepare for growing financial burdens. Finally, someone must take the rap for the mistakes that led to the mess. All in all the near future looks rather depressing.
Seeing possible positive effects is very important. In the long run, malicious glee or gloating over the fate of the former masters of the universe, the smart bankers and financiers only gives meager comfort.
What good can arise out of this desperate situation? First, there is the bold hope for greater modesty. Modesty should be urgently recommended to the professional groups that always know better: economists, politicians and journalists. With only a few exceptions, they did not see the crisis approaching and were blinded by smart types in designer suits who proclaimed with puffed-up chests that everything including the excessive debt culture was best.
The experts and politicians no longer dare to speak so enthusiastically of the end of boom and bust and economic cycles or dismiss those who warned of historical euphoria and blind faith in technology as spoilsports. The burst bubble of the New Economy should have been understood as a warning. Then as today wishful thinking and greed blocked the view to reality.
Now the age of austerity dawns, the age of frugality. The comparison with fever that attacks an organism is appropriate. Recessions offer a period of welcome recovery, recuperation and relaxation.
Losing the hectic turbo-lifestyle is not really a great loss. Different American studies from the past 20 years found persons across all classes were generally less concerned for themselves and their families in good times that are now described as an “epoch of irresponsibility.”
Drinking too much and eating too much are wasteful and extravagant. More food is thrown away. Children are outsourced into expensive shelters or spend time before picture screens rather than with themselves. Cooking at home and taking a walk are dismissed as a waste of time.
People will work more and harder. The stress is great. Although materially better off than ever, people are obviously not happier than in times of downswing. This finding has irritated leftist socialists and led to many studies on the theme happiness that ultimately came to the not-surprising conclusion that material betterment alone does not make people more contented.
The opposite effect occurs in harder times. People spend more time at home, prepare meals themselves, smoke and drink less while the need for nannies declines. People read more in recessive times. England’s libraries register a higher demand for books.
The freeways across Europe have become noticeably quieter; driving is slower. Streets are no longer so congested. Flying turns out to be a little less unpleasant. The pushing and shoving in airspace has slackened. There are fewer delays. One doesn’t have to hang around so long in airports that have changed into glittering noisy shopping malls.
That service is better and the tone is friendlier in restaurants and businesses is also a plus. A long-lasting boom inevitably leads to arrogant, haughty and snotty attitudes. Now the customer is king again. This is beneficial in looking for a plumber or electrician.
The faint hope is that the insight about our absurd social development stylizing shopping as a legitimate meaningful leisure time activity will spread. Research gives statistically demonstrable evidence that life is healthier in recession. The number of deadly illnesses falls and fatal traffic accidents are exceptional.
Everything is not doom and gloom. Focusing on the brighter side of life is important, particularly when dark times are on the horizon.
The good side in downswing phases. People live more consciously and healthy
By Jurgen Kronig
[This article published in: ZEIT Online, 10/17/2008 is translated from the German on the World Wide Web, www.zeit.de/online/2008/43/krise-ohne-depression.]
A good portion of gallows humor is necessary in these times to see the brighter side of life. Grim times are beginning. For many millions, life will be hard. The financial crisis was only the prelude. A serious recession cannot be avoided any more.
One can only hope to be spared a depression. In the United States, the unemployment figures climb. The taxpayers in Europe and America who became bank owners overnight prepare for growing financial burdens. Finally, someone must take the rap for the mistakes that led to the mess. All in all the near future looks rather depressing.
Seeing possible positive effects is very important. In the long run, malicious glee or gloating over the fate of the former masters of the universe, the smart bankers and financiers only gives meager comfort.
What good can arise out of this desperate situation? First, there is the bold hope for greater modesty. Modesty should be urgently recommended to the professional groups that always know better: economists, politicians and journalists. With only a few exceptions, they did not see the crisis approaching and were blinded by smart types in designer suits who proclaimed with puffed-up chests that everything including the excessive debt culture was best.
The experts and politicians no longer dare to speak so enthusiastically of the end of boom and bust and economic cycles or dismiss those who warned of historical euphoria and blind faith in technology as spoilsports. The burst bubble of the New Economy should have been understood as a warning. Then as today wishful thinking and greed blocked the view to reality.
Now the age of austerity dawns, the age of frugality. The comparison with fever that attacks an organism is appropriate. Recessions offer a period of welcome recovery, recuperation and relaxation.
Losing the hectic turbo-lifestyle is not really a great loss. Different American studies from the past 20 years found persons across all classes were generally less concerned for themselves and their families in good times that are now described as an “epoch of irresponsibility.”
Drinking too much and eating too much are wasteful and extravagant. More food is thrown away. Children are outsourced into expensive shelters or spend time before picture screens rather than with themselves. Cooking at home and taking a walk are dismissed as a waste of time.
People will work more and harder. The stress is great. Although materially better off than ever, people are obviously not happier than in times of downswing. This finding has irritated leftist socialists and led to many studies on the theme happiness that ultimately came to the not-surprising conclusion that material betterment alone does not make people more contented.
The opposite effect occurs in harder times. People spend more time at home, prepare meals themselves, smoke and drink less while the need for nannies declines. People read more in recessive times. England’s libraries register a higher demand for books.
The freeways across Europe have become noticeably quieter; driving is slower. Streets are no longer so congested. Flying turns out to be a little less unpleasant. The pushing and shoving in airspace has slackened. There are fewer delays. One doesn’t have to hang around so long in airports that have changed into glittering noisy shopping malls.
That service is better and the tone is friendlier in restaurants and businesses is also a plus. A long-lasting boom inevitably leads to arrogant, haughty and snotty attitudes. Now the customer is king again. This is beneficial in looking for a plumber or electrician.
The faint hope is that the insight about our absurd social development stylizing shopping as a legitimate meaningful leisure time activity will spread. Research gives statistically demonstrable evidence that life is healthier in recession. The number of deadly illnesses falls and fatal traffic accidents are exceptional.
Everything is not doom and gloom. Focusing on the brighter side of life is important, particularly when dark times are on the horizon.
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