What we are currently experiencing is unprecedented. A major economic catastrophe of which is mostly welcomed and intentional. We have locked down all function of our economies, restricting the movement of people, shutting many away from their normal lives of working through the forced closure of many businesses or what could be deemed the “free market”.
The free market is shut, but life continues. The UK government after many years of some of the most severe austerity in the advanced economies has made available spending that is astronomical including and not limited to the paying of 80% of the wages of many private sector workers. The rescue packages being dealt out by governments globally equates to trillions of dollars in value.
How are free markets suddenly disregarded with centrally planned state flotation of the economy being allowed by many of these private corporations that herald deregulation and outsourcing. Many may try to argue that this economic downturn is artificial due to its transparent causation. But should the free market not factor in all risks? Should it not be sustainable through any contingency?
That is what is usually argued, that the free market can provide all that the market demands and sustain economic activity efficiently. What if, as in this case, the market is no longer needed? What if all that is required is the bare necessities and the majority of activity is actually detrimental to many individuals’ lives? This is what we have now seen, the necessity of government, including in its existence in the economy. Our governments have increasingly pulled away from involvement in our economies with consecutive bodies being elected “reflecting” the wants of the public.
Things need to change. No longer can this form of capitalism function. We as societies already faced problems in the form of climate change and foreign ideological regimes with state surveillance systems that would keep the majority of our citizens awake at night. A new system of economics needs to be born from this. One that is inclusive, morally and socially responsible, and accountable both with risk and impact with safety being paramount. Safety is a fundamental component of the new system. No one wants a repeat of this, even those in the free market. The uncertainty, self-inflicted wounds, and chaos that this pandemic and subsequent lock downs has rout has brought oil to its knees, whole industries facing collapse, to name only a couple of the historic firsts. Now is the time to use this to our advantage and make the change needed to save this world. Life cannot go back to “normal”, we need a new normal and it needs to start now.