In the News (from The New York Times): “Job Losses Pose a Threat to Stability Worldwide” Laurent Wauquiez, France’s employment minister, said, “The thing that is new [about the crisis] is that it is global.”
Worldwide job losses from the recession that started in the United States in December 2007 could hit a staggering 50 million by the end of 2009, according to the International Labor Organization, a United Nations agency.
High unemployment rates, especially among young workers, have led to protests in countries as varied as Latvia, Chile, Greece, Bulgaria and Iceland and contributed to strikes in Britain and France.
In emerging economies like those in Eastern Europe, there are fears that growing joblessness might encourage a move away from free-market, pro-Western policies, while in developed countries unemployment could bolster efforts to protect local industries at the expense of global trade … increasing the likelihood of protectionist trade battles.
My Comment: What kinds of losses will the current economic slowdown in the United States lead to in the entire world, and how soon will it echo in the whole world? Frankly, we don’t know, and the reason it’s impossible for us understand the crisis is that it is global.
Fear and hopelessness will cause the politicians and economists to look for new ways of solving the problem. However, in the meantime, everyone will just blame America for everything, saying that everyone suffers because America isn’t buying their products.