Which of us has not heard about crisis phenomena in the global economy? You just have to turn on the TV, as there and here you can hear about various meetings at the highest level, where various options for leaving the crisis are discussed. Yes, on the one hand, a lot is said about the activation of business activity and growth of employment, but whether all this is implemented? As a rule, so far the only methodology used by donors uses is strict savings and reduction of government spending, which result in an increase in social tension.
Without a doubt, the social consequences of the economic crisis will be felt for a very long time. After all, as many experts of the policy of strict economy, which are carried out by many states, which have been in a difficult economic situation, have not yet been able to bring the desired results. What is happening? Receiving the next tranche of financial assistance, the state assumes obligations to reduce government spending, including social payments (pensions, benefits, and so on). The reduction of social benefits, in turn, reduces the purchasing power of people, and at the same time the level of sales. It turns out that with each month the enterprises are sold less and less, the proceeds decrease after, forcing enterprises to optimize their costs, reducing staff. Thus, wanting to save, the state only increases unemployment and social tension in society.
Politics of “tightening belts” was criticized by many experts for its small efficiency. More emphasis must be placed on diversification of the banking system, creating new reserve currencies, stimulating growth and business activity, which will be able to defeat the global crisis at the global and regional levels, as well as create new jobs. Secondly, the crisis is an excellent opportunity to structurally rebuild the existing economic model, making it less vulnerable to various external factors.
Do not forget that many countries should seriously think about the social components of their budgets, because this was one of the reasons that brought Greece to the face of default, where the state took over too much social payments that were not backed up by productivity. Yes, the global crisis really had its influence on the slowdown in the growth rate of economies, but, as experts note, it is not worthwhile to write off the mistakes of existing economic models and the desires of many governments with generous social benefits to enlist their voters support.
To overcome the consequences of crisis phenomena, further joint work of developed and developing economies aimed at diversifying backup currencies and banking systems that will allow the world economy to become less vulnerable.
