A ‘Great Reset’ Is Coming.. But Not for CapitalismMauldin Economics
The Great Reset is my term for climactic events that resolve our global debt overload while at the same time dealing with slow economic growth, high unemployment and social unrest.
I’ve talked about this concept for many years. I expected this would happen after we hit a debt wall, likely in the late 2020s. But, like many other things that have been accelerated by current events, this type of Great Reset is coming even sooner.
More recently, others have started using this term for their own purposes. The World Economic Forum sees the coronavirus pandemic as an opportunity to completely reset capitalism.
“COVID-19 lockdowns may be gradually easing, but anxiety about the world’s social and economic prospects is only intensifying. There is good reason to worry: A sharp economic downturn has already begun, and we could be facing the worst depression since the 1930s. But, while this outcome is likely, it is not unavoidable.
“To achieve a better outcome, the world must act jointly and swiftly to revamp all aspects of our societies and economies, from education to social contracts and working conditions. Every country, from the United States to China, must participate, and every industry, from oil and gas to tech, must be transformed.
“In short, we need a ‘Great Reset’ of capitalism.”
WEF calls this effort its “Great Reset Initiative.”
For the record, I think much of what they propose will make the version that I see even worse.
I agree capitalism has gone off track and needs some adjustments, and not just minor ones. The current morass of crony capitalism and lobbying for special government favors is abhorrent.
But “revamp all aspects of our societies and economies” sounds ominous. Especially coming from the WEF—the people who nominally run the global economy.
Further, what they really propose is that maybe they pay a little more in taxes while those further down the food chain carry the brunt of change.
When you start talking about resetting the educational and social contracts and working conditions, you are talking a radical social agenda. I believe we must—and will—have considerable change in the social structure of this country.
That is what the current partisan politics is telling us. Too many people on both sides feel the current “social contract,” however they define it, is not working for them. Income and wealth inequality are very real.
I am not convinced a WEF-style “Great Reset” is the answer.
Fortunately, I don’t think WEF will get very far. More likely, this is another example of wealthy, powerful elites salving their consciences with faux efforts to help the masses, and in the process make themselves even wealthier and more powerful.
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New York Times best seller and renowned financial expert John Mauldin predicts an unprecedented financial crisis that could be triggered in the next five years. Most investors seem completely unaware of the relentless pressure that’s building right now. Learn more here.
Article By John Mauldin