Editor in Chief: Moh. Reza Huwaida Thursday, October 18th, 2018

Technical Fixation of Economic System

As the consequences of 2008, financial crisis still dominates the world economic recovery, and governments are deeply involved in combat across the globe to control its fallout and pull the economy back on track, there are growing symptoms of civilians' disappointment and frustration with measures held yet.

Presently, there are deeper questions about the ruling economic system: whether is the system sustainable and working out with small technical fixation? There are leftists gaggling now days more then ever while hearing voices calling for economic regulation and restraining the presently unbridled capitalism which has led to growing gap and creation economic classes. Though economic classes have been always out there in the history with shadowy borderline, but the situation is getting severe and serious as the gap has become so wide that no the kind of political measure have been held yet can bridge it.
So, there are needs of much bolder and fundamental steps to solve the challenge. What kind of the measures must be held?

No doubt, 2008 financial crisis was not the only recession; however, it was the biggest. But all economic crisis and stagnation was ultimately ended by governments' interventions during past decades. But it is the first time, after the biggest economic crisis of 1930s, that governments' interventions have been unable to solve the problem and bring the confidence back to global markets entirely. Instead, this time a new scenario came to dominate the market. That was exactly when governments started injecting cash into the global markets to restore their confidence.

Before the eruption of the crisis and collapse of the global market, many countries around the world without considering the consequences were running on visible budget deficits and sovereign domestic as well as foreign debts.

With the eruption of recession, on one hand, the government revenue started moving down equally with the decline of markets. On other hand, many governments in order to bring the confidence back to market unwillingly started bailing out financial institutions and corps' runs. The measure set public budget on edge of precipice and pushed governments further into huge debts that many are unable to escape the possible defaults.

Thus, the prospective of an economic chaos is booming. And there are voices heard about a global cooperation and collaboration to deal with challenges jointly otherwise the global recession would wash away countries one by one. What politicians and financial institutions chief can do actually?

Though often there are statements for system change, but decision makers understand there is no alternative to replace. So, what they prescribe for the economic pain is technical fixation through serious sticking to global interests rather national ones. And also bail out of crisis ridden with countries having cash.