Why This Recession Is Different
The comments below are an edited and abridged synopsis of an article by Charles Hugh Smith
Smith explores what is different now compared to recessions of the past 60 years. All of the items discussed are structural dynamics that won’t go away in a few months or years.
Smith explores ten areas: Deglobalization is inflationary; energy will cost more; capital will no longer have zero cost; definancialization will revalue assets; wealth will take a hit, affecting the top 10% who own almost 90% of the wealth; labour scarcities will increase; the unprecedented inequality of income and wealth has changed perceptions and values; the pandemic changed perceptions of what’s important; non-essential jobs will be slashed; and deglobalization will re-order mercantilist economies.
All of these are structural dynamics that disappear in a few months or years. They will transform the economy and society either positively (for those who embrace Degrowth) or negatively (those who cling to the bubble-dependent waste-is-growth landfill economy).
