MACROECONOMICS IN EXTINCTION : IMPACTS OF THE GLOBAL ECONOMIC CRISIS

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The Present Global Economic Crisis, emerged as The Great depression II, challenges the value and worth of Macroeconomics. It has become outdated to deal with the Global Economy for they are founded in Primitive Tribal Ideology of the 'Chosen People' and 'the Promised Land' without any global or universal outlook. They lost their relevance and ability to solve either national or regional or global economic problems. That is why; in the midst of the Global Economic Crisis grown to the extent of The Great Depression II, even the Keynesian remedies have become counter-productive. There is nothing like micro- or macro economic solutions but only Global Solutions for which Economics must be redesigned and can be called Mega or Universal Economics. There is no American or European or Chinese or Indian or Brazilian or Arab or African Solution or Strategy to deal with the Global Economic Crisis, but only Global or Universal Solution.

What is taught in schools, colleges and universities under Microeconomics or Macroeconomics has become irrelevant in the midst of the unresolved and prolonged Global Economic Crisis. The so called peer reviewed research papers in Economics and Management have no practical value other than getting a teaching position or promotion in colleges and universities. It is high time to critically examine the philosophical, theoretical and methodological foundations of both Micro and Macro-Economics and to adopt a global or universal outlook and approach for Economics in stead of tribal or national approaches. As an alternative, Mega or Universal Economics has been proposed.

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MACROECONOMICS IN EXTINCTION : IMPACTS OF THE GLOBAL ECONOMIC CRISIS

  1. 1. MACROECONOMICS IN EXTINCTION: IMPACTS OF THE GLOBAL ECONOMIC CRISIS DR. RAJU M. MATHEW
  2. 2. SOMETHING IS WRONG• In spite of the Stimulus Packages in almost all countries besides the brain storming sessions of the World Economic Forum, deliberations of the UN, IMF. OECD and World Bank and the Nobel Laureates in Economics and advices of the Management Gurus, the teaching and research works of the Harvard or Stanford Business Schools, the world is at the grip of the Great Depression II Lasting at least 2025.• This is an Inquiry for the underlying causes of the Global Economic Crisis and Failure of Economists , Management Experts and Rulers and Political Leadership. It is an attempt to search for alterative economic global strategies in stead of the familiar Macroeconomics, including Keynesian Economics.
  3. 3. ECONOMICS GETTING ineffective• It is hearting to note that our economists, management experts and strategists are getting ineffective to tackle the global economic crisis, affecting the entire humanity, except some oil exporting countries. It has grown to the level of the Great Global Depression. Arts and science of Economics spread across Micro or Macro or Keynesian Economics and the associated Management Science are getting irrelevant and toothless in the midst of the global economic crisis, affecting more seriously the youth and also the young children all over the world. One generation is already lost; we have to save at lest the next generation.
  4. 4. THE ROOT CUASE OF THE MALADY• Some thing is seriously wrong with the philosophical, theoretical, methodological and practical aspects of Economics, especially Macroeconomics. It has not yet grown to „universal ‟ unlike Science, but remains parochial or regional or national with crude tools and techniques.• Economists, starting from Adam Smith, Marshall, Marx, Keynes to the living Nobel laureates in Economics, could not talk much about universal truth applicable to all nations or peoples, but only in some countries or regions that too only for a particular situation or context.• Economists, including the World Economic Forum, are grappled with identity crisis without any direction and solutions for the basic problem of the humanity.
  5. 5. THE GREAT DEPRESSION OF 1929• The Great Depression of 1929 shattered the faiths of economists in Say’s Law which states, “supply creates its own demand” and also the analytical techniques of ‘The Principles of Economics’ (1890) of Alfred Marshall and his Microeconomics that dominated over Adam Smith’s ‘The Wealth of Nations’ (1776) and the previous Mercantilism.• Keynesian Economics emerged with „The General Theory of Employment, Interest and Money’ (1936) of J. M. Keynes whose remedies found to be very effective both in England and the USA to tied over the Great Depression of 1929.• However, the Keynesian remedies have been prescribed as a panacea for all economic illness in almost all countries even in the modern era. As a result, they have become counter productive for their over dosage in the form of mounting deficit financing, public borrowing and public expenditure for all economic maladies in almost all nations, including the recent „Stimulus Packages‟.
  6. 6. THE FALL OF COMMUNISM• With the fall of the USSR and the Socialist Bloc, and the naked adoption of Capitalism in a different name by the Communist China and the subsequent high level corruptions, „The Communist Manifesto‟ (1848) of Karl Marx (1818-1885) and his subsequent „Das Kapital‟ in four volumes (1867, 1883, 1885 and 1894) lost their appeal to the young intellectuals.• Karal Marx, for his Jewish background, was not free from the tribalism and ideology of Abraham and Moses based on „the Chosen People‟, War and Terror for „the Promised Land‟. Marxism starts with Class War with in a society and end with Dictatorship leading to high level corruptions and total inefficiency and mass exploitation; that is what we learn from history. Transferring the surplus value of the common people, both the Communist Party and the Government in China become very rich, keeping people at subsistence level. This is called the reverse application of Marxism.
  7. 7. THE GREAT DEPRESSION II AND THE POST-KEYNESIAN ECONOMICS• For the present Global Economic Crisis, that has emerged as „The Great Depression II‟ lasting Till 2025, the world is getting realized the ineffectiveness and impotency of both Microeconomics and Macroeconomics, including Keynesian, Post-Keynesian, Neo-Marxian and Modern Islamic Economics to deal with the Global Economic Problems. For they are too narrow and designed only for a particular society or economy without any solution to the global problems. They crumble when applied globally for their underlying primitive tribal ideologies.
  8. 8. THE DEADLY TRIBAL IDEOLOGIES• The Jews, the Christians and the Muslims believe that they were originated from Adam ; ‘the Tribe of Abraham’ alone was ‘the chosen people of the God’, entitled to loot, rape, conquer and even exterminate the other tribes who were branded as the enemies of the God, as described in the Old Testament. The God even promised Abraham of the conquering of the Prosperous Land of the people of Canaan flown with milk and honey, their city, farm lands, cattle and even beautiful women by the children of Abraham.• The shrewd military strategist, Moses and his General Aaron on their march towards ‘the Promised Land’ brutally and cold bloodedly looted, raped and exterminated several peoples and their kings as narrated in the Old Testament, especially Deuteronomy.• The Western Christian and the Arab Muslims worlds, besides the Jews and their Economics and Political Science, have been built up on these two primitive tribal ideologies – ‘the chosen people’ and ‘the promised land’ that give justifications for war and terror besides branding anybody as the enemy of the God or the People. This is the basis of the Holy War, Terrorism and Religious
  9. 9. THE TWENTY- FIRST CENTURY PARADOX• The primitive tribal ideologies of Abraham and Moses, based on „The Chosen People‟ and „the Promised Land‟, as glorified in the Bible and the Quran, have a long lasting influence over the predominantly Jewish or the Christian western societies.• Such deadly ideologies are purely materialistic in which the God was made the „Lord of the Armed Forces or Deadly Weapons‟ who might destroy the other tribes or races, branded as „the enemies of the God‟. The same strategy has been employed by the religious fundamentalists or terrorists as well as those who declare war on terror.• Economists, including the „Mercantilists‟ „the Classical‟ „the Neo-Classical‟, „the Marxists‟, the Fascists and „the Keynesians‟ and the Modern were not free from such dangerous ideologies. So also is the case with the Islamic Economics and Islamic Financial System in the other parts of the world. They are so deep-rooted in these societies that they could not think of another alternatives in spite of the ever growing complex problems.• The greatest paradox of the twenty first century is the embedding of the Primitive Tribalism over the High-Tech and Globalized World causing unresolved pain, growing strain and ever lasting blood shedding.
  10. 10. ECONOMICS OF THE TRIBES• Tribal ideologies and instincts form the basis of Mercantilism, the Classical, the Neo-Classical, the Keynesian, the Marxian, the Muslim and Modern Economics, that can be brought under Micro and Macro Economics. They are basically concerned with the well being of a particular tribe or tribal-based economy, without bothering about the misery or sufferings of other tribes or peoples or nations.• Even Marxism is founded on the war or clashes between two classes in a tribal based society or economy. While the Communists in Russia or China were concerned only about Russia or China the Capitalist or the Socialist economists of America or Britain were or are concerned only about America or Britain.• In short, both Micro and Macro Economics are nothing but mere Tribal Economics without taking into account the Humanity as a whole or the Global Economy, treating everybody as „chosen‟ or „equal‟, for the lasting influence of the primitive tribal ideologies of Moses or Abraham.
  11. 11. GLOBALIZATION AND INFORMATION TECHNOLOGY REVOLUTION• Information Communication Technology Revolution of the late 1980s facilitated Trans-border Data Flow and the emergence of Multi- National Corporations, challenging the fundamental principles of „Sovereignty‟ and „National Boundaries‟ of the Political Economy. They have paved the way for „Globalization‟, the flow of capital, technology and manpower across the borders and the dominance of „Service Sector‟ over Agriculture and Industry. This has challenged the edifices of both Micro and Macro Economics.• As a defense mechanism, economists turned towards Data and Data Analysis, Projections, Forecasting and Computer Simulations without much knowledge of the working of an economy and without much understanding of the emergence of a „Global Economy‟ in which both the „chosen‟ and „cursed‟ nations or people have an equal role. The fate of the chosen people of the industrialized nations has been determined even by the people of „the Cursed Nations‟, now known as Emerging Economies, including BRICS besides the poor nations.
  12. 12. • Business Management and Business Schools have emerged as applied forms of Economics.AND heavily depend upon „Military CONSUMERISM They CORPORTISM Science‟ for launching aggressive Marketing and promoting Consumerism that paved the way for „Corporatism‟, even challenging Capitalism and Democracy. Corporatism has reduced individuals or nations as mere tools to serve the corporate interest over the humanity.• The primitive tribalism and the tribal ideologies have been skillfully embedded in Corporatism. Corporatism is powerful enough to determine the policies of the American President, the Indian or the British Prime Minister and besides the policies of even the leftist or communist political parties. It is powerful enough to spread terrorism or bringing war by financing religious fundamentalism or terrorism or bribing rulers and law makers. Even Islam or Christianity is not free from the shadows of Corporatism. In creating and aggravating the Global Economic Crisis, Corporatism has played a strategic role for its narrow interest and short sightedness.•
  13. 13. MICRO AND MACRO ECONOMICFRAMEWORKS• Within the framework of Micro and Macro Economics, an economy is just a summation of millions of individual national economic production or consumption units and it can be amenable to computerized data collection, computation, manipulations, projections, simulations and forecasting.• They cannot treat the Global Economy as a whole entity rather than mere a summation of the autonomous national entities. Inter- sector and inter-regional imbalances, besides over exploitation of the natural
  14. 14. THE EXTINCT SPECIES• Economists, including Nobel Laureates and Management Experts have become warriors without any weapon in the rising tide of the Global Economic Crisis, emerged as the Great Depression II lasting till 2025. Now nobody trusts upon the wisdom or remedy of the Micro and Macro Economists, including Keynesian, Modern, Marxian , Islamic and Post-Modern Economists. They are turning to extinct species, for the counter productiveness of their teachings, theories, laws, principles, solutions or remedies.• The ignoble fall of Micro and Macro Economics has already been started for the primitive elements and ideologies imbibed or inbuilt within them that make them ineffective. With tribal mindset and ideologies nobody, including Micro or Macro economist, can solve the Global Economic Crisis, emerged as the Great Depression II affecting the entire nations and the humanity as a whole.
  15. 15. UNIVERSAL; NOT TRIBAL• It is time for Islam and Christianity to develop a true universal mindset and ideology quite different from the narrow and dangerous primitive tribal ideologies based on „The Chosen People‟ and „The Promised Land‟ , „Glorification of War and Terror‟ and adding misery of the common people as the Will or Commandments of the God.• It is time for Islam and Christianity and their Economists to recognize the universality of the entire humanity, treating everybody, every tribe or race or religion or nationality , as chosen or equal without glorifying the crimes committed by one or two tribes against the humanity.• The Humanity has a known history of 60,000 years where as Christianity has just 2000 years and Islam mere 1400 years. Humanity will survive without them as was in the case of Communism or Fascism, in spite of indoctrination of the children. Any Ideology or Religion founded on „Hate‟, „Revenge‟ and „Selfishness‟ cannot survive when people are getting enlightened. In aggravating the Global Economic Crisis, religions and ideologies too have played a very important role by spreading hate and making unity and cooperation among people or nations impossible.
  16. 16. MERCY, CHARITY AND DONATIONS• It is time for Islam and Christianity to realize that with mere deeds of Charity, Mercy and „Shakat‟ or Donations, human misery due to global inter-sector and inter-regional imbalances, cannot be eradicated rather than sustaining the inequality between the rich and the poor in a society or the rich and poor nations globally. Global problems can be solved only with a universal and global solutions.• Islam and Christianity must adopt Universalism and Spiritualism, in stead of Tribalism and Materialism and Monopolizing the God or Paradise for their blind followers or „yes men and women‟ without any brain, including martyrs and murderers . Living for the faith or religion and let living others is greater and nobler than dying or killing for the faith or religion. Hell is created for the murderers and oppressors even in the name of faith or religion. They are the worshippers of the Devil or Satan and not the God.
  17. 17. THE RISE OF MEGA OR UNIVERSAL ECONOMICS• The rise of Mega or Universal Economics, treating the entire world as a Mega Economy and giving equal importance to all men or people or nations on earth, is a historical necessity to solve the basic problem of the humanity, ensuring Food, Dignity and Knowledge for All; insulting the Global Economy from Recession and Depression and ensuring Inter-Sector and Inter- Regional Balances. It ensures the optimal utilization of the wealth and talents for the benefit of the humanity as a whole.
  18. 18. BASIS OF UNIVERSAL ECONOMICS• Universal Economics aims at ensuring lasting peace and prosperity for the entire humanity, irrespective of any race, tribe, religion or nationality. It incorporates the basic elements of Spirituality and Humanism.• Universal Economics is quite different from the familiar Micro and Macro Economics, including Keynesian, Marxian, Islamic, Fascist or the Western Economics, that deny Humanism , Spirituality and the Universal Well- being of the Mankind.• Universal Economics treats the entire humanity as a whole and the social production processes as the means for the well being of the entire humanity without the „Dictatorship‟ of any tribe or class or people over others, ensuring inter-sector and inter-regional balances.
  19. 19. MORE RESEARCH AND STUDIES ARE REQUIRED• Further studies and research are required to develop Mega or Universal Economics as a major field of study, recognizing the limitations of the familiar Micro and Macro Economics. Fresh brains must come forward with wonderful ideas and strategies acceptable to the people around the world.• Universal Economics has been designed to equip Economists, Policy Makers and Management Experts with effective tools to tied over the Great Depression II and lead the Humanity for the lasting Peace and Prosperity.• Some of the underlying principles of Universal Economics have been discussed in my earlier writings on the Global Economic Crisis, Education, Information Technology, Knowmatics, Knowledge Industry and Knowledge Banks appeared in the Market Oracle (UK) or presentations at www.slideshare.net/drrajumathew

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