Economic uncertainty from "summary" of The Economic Consequences of Peace by John Maynard Keynes
The uncertainty of economic prospects is the dominant characteristic of our time. The future is hidden from our present gaze in a mist of conflicting tendencies. We must guess the direction of change and the intensity of change. Yet, the future is not merely dark but absolutely impenetrable to the human mind. It is hard to say if the course of events will be dominant by the spirit of health or by the spirit of disease. Everywhere there is a profound sense of disappointment, a feeling of political and social insecurity. The air is full of suspicion and fear of revolution. Governments, old and new, are losing their heads and their hearts. They are struggling to maintain the established order, but they are unable to see beyond their own immediate interests. The result is a general breakdown of authority, a paralysis of decision-making. The economic machinery is creaking and groaning under the strain of war and reconstruction. There is a lack of confidence in the stability of currencies and the solvency of states. The cost of living is rising, and the burden of debt is crushing. The productive capacity of nations is impaired, and the distribution of wealth is unequal. The specter of unemployment haunts the industrial centers of the world. Workers are thrown out of employment, and employers are unable to find markets for their goods. The wheels of industry are grinding to a halt, and the flames of discontent are spreading through the ranks of labor. The social fabric is torn by class conflict and national rivalries. In such an atmosphere of uncertainty and insecurity, it is impossible to make any precise predictions about the future course of events. The only certainty is that the world is passing through a period of profound crisis, a crisis of civilization itself. We must be prepared for the worst and hope for the best, but we must be ready to face the challenges that lie ahead with courage and determination.
Similar Posts
Monetary policy is a powerful tool in influencing economic activity
Monetary policy refers to the actions undertaken by a central bank, such as the Federal Reserve in the United States, to contro...
Building a more sustainable future
The future we seek is one that is sustainable, a future where our actions are in harmony with the earth and all its inhabitants...
Taxes can also influence aggregate demand
When the government changes taxes, it affects people's disposable income. Disposable income is the total amount of income that ...
Collective action
In times of crisis, when people are faced with extreme shocks to their lives and livelihoods, it is often the case that individ...
Debt levels impact economic growth
Atif Mian and Amir Sufi argue that the level of debt in an economy has a significant impact on its overall economic growth. Whe...
The importance of digital literacy will grow
In the coming years, the significance of digital literacy is poised to increase exponentially. As technology continues to advan...