Is Your Piggy Bank Safe?  

 Simon Giguère 

As we all know, our world is being controlled by some pieces of paper called "money". Humankind is seeking fortune, no matter what the consequences of their acts are. So, there’s one question that we should be aware of: what is the financial future of the world? In my opinion, the economy will face a major crash in the second half of the 21st century.

First of all, the financial disparity between the rich and the poor people is overwhelming. In fact, 1% of the population possesses 50% of the world’s wealth. This gap has a significant importance when it comes to analysing the future economy. Rich men who own worldwide corporations are establishing their factories in poor countries just to hire people at a lower cost. According to Joseph Stiglitz, winner of the 2001 Nobel Prize in Economic Sciences, this phenomenon will cause a decline in the aggregate demand by transferring money from the poor to the rich, from people who would spend the money to people who do not need to spend the money. In other words, if there are less consumers, there’s going to be less production and less economic activities in the future.

Also, technology is always getting better and better, so we’re trying to replace humans by robots. Why? There’s a much bigger profit to make out of technology; lowest cost in the long-term, safest way for a boss to make sure nobody gets injured, better productivity, etc. However, is it worth it, considering that the unemployment rate is going to grow exponentially and that these people are going to be unable to live a satisfying life? Patrick Thibodeau, writer for the Computer World magazine, says that 1 person out of 3 will lose their job due to robots by 2025, causing that there is going to be less people rich enough to consume and less profits for the corporation’s owners. How many people are going to be replaced by technology in 2050? 2 out of 3?

Furthermore, our society is facing a major threat: overconsumption. Indeed, by overconsuming the Earth, we will confront a lack of resources. What do you think will happen eventually if all of our resources are gone? According to the Global Footprint Network, we’re now living under credit since August 8th, meaning the world has exploited all the reso urces we should have been using in a year, only in 8 months. Without any commodities, there won’t be any production left to do, meaning that the economy will inevitably crash in the future. There’s also going to be a rarefaction of resources (such as drinking water) that could cause enormous conflicts all around the world. If they can’t afford essential needs, people won’t consume things they don’t need. Once again, the economy would face major problems.
 

In conclusion, the economy is a tricky subject to predict, because we never know how things are going to end up. Let’s take for example the Wall Street Crash of 1929: people said that there was going to be a financial crash, so they decided to retrieve their shares, directly causing the crash. That’s quite ironic, isn’t it? Besides, the First and the Second World Wars had a very good impact on the economy. Is it fair to say that having a third World War could be benefic for the world’s economy?

 

            

 

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