Recession turning into social crisis?

As the economy continues to shrink, massive unemployment is expected to spur social and political unrest across the industrialised world, warned the OECD in economic projections presented today (31 March). (c.f. http://www.euractiv.com)

Weak export markets, falling investment and a continuing credit crunch will hit euro-area activity hard over the coming six months. The recovery will only begin to build momentum by the middle of 2010. GDP is projected to drop 4.1 percent in 2009 and by 0.3 percent next year. Consequently, unemployment will climb continue to climb on the coming months. In an attempt to ease soaring unemployment, the OECD recommended providing adequate safety nets for job losers and low-income families, which it said should prevent them falling into poverty and keep stable demand. (c.f. http://www.euractiv.com)

As mentioned by the OECD the actual crisis might turn into a social crisis. Thus, a danger might also be that the European community develops to a two classes community. From my point of view, the EU should therefore focus its aid programs on obtaining the middle class.

Advertisements

3 thoughts on “Recession turning into social crisis?

  1. It seems to me that financial crisis is just a natural part of the world´s evolution. I think that the world´s catastrophes, wars and even financial crisis try to indicate us to slow down.. we want to have the best technologies, the fastest vehicles, as much money as possible.. but from time to time in the history there is something that causes problems and thwarts our plans. Banks wanted to earn a lot of money and the debtors needed a lot of money, so the banks provided the money.. and here we are, another world´s financial crisis (and surely not the last one). I just hope, we will learn from our mistakes.

    Reply
  2. I remember what had happened in Argentina and Brasil following to economic crises.. but ofcurse they are extreme examples but some social regulations and state suppoted programmes are urgently needed before the affects of crisis felt on social level.

    Reply
  3. I also hope that we will learn from our mistakes. As mentioned in another artivcle of me, the most important fact is, that managers and other leaders of our economy come back to old values of social responsibility…..values which get lost more in more in our modern world.

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s