Combating The Virus: Mass Unemployment is Not the Solution
Millions of people around the World are victims of the fear campaign. Panic prevails. Day after day, the persistent impact of media disinformation concerning the Killer Virus is overwhelming.
Fear and panic, coupled with outright lies prevent people from understanding the logic of these far-reaching economic and social policies.
On March 11, 2020 the WHO declared a Worldwide pandemic, requiring the lockdown and closure of the national economies of 193 member states of the United Nations, with devastating economic and social consequences: unemployment, poverty, despair.
These authoritarian measures imposed on millions of people were accepted outright. Public opinion was led to believe that the measures were a solution to combating the “Killer Virus”.
The Second Wave
And now, seven months later, a Covid-19 “Second Wave” has been announced. The proposed solution to combating the “killer virus” is to prevent and postpone the reopening of the national economy, coupled with the enforcement of social distancing, the wearing of the face mask, etc.
Needless to say: at the outset of this Second Wave, the global economy is already in a state of chaos. While the reports fail to reveal the depth and seriousness of this global crisis, the evidence (which is still tentative and incomplete) speaks for itself.
The “Real Economy” and “Big Money”
Why are these Covid lockdown policies spearheading bankruptcy, poverty and unemployment?
There is an important relationship between the “Real Economy” and “Big Money”, namely the financial establishment.
What is ongoing is a process of concentration of wealth, whereby the financial establishment, (i.e. the multibillion dollar creditors) are slated to appropriate the real assets of both bankrupt companies as well as State assets.
The “Real Economy” constitutes “the economic landscape” of real economic activity: productive assets, agriculture, industry, services, economic and social infrastructure, investment, employment, etc.
The real economy at the global and national levels is being targeted by the lockdown and closure of economic activity. The Global Money financial institutions are the “creditors” of the real economy.
The closure of the global economy has triggered a process of global indebtedness. Unprecedented in World history, a multi-trillion bonanza of dollar denominated debts is hitting simultaneously the national economies of 193 countries.
Under the so-called “New Normal” Great Global Reset put forth by the World Economic Forum (WEF), the creditors (including billionaires) will eventually buy out important sectors of the real economy as well as take over bankrupt entities. The creditors will also seek to acquire ownership and/or control of “public wealth” including the social and economic assets of the State through a massive indebtedness project.
A system of “Global Governance” controlled by powerful financial interests including corporate foundations and Washington think tanks oversees decision-making at both the national and global levels. The late David Rockefeller defined global governance as “Supranational Sovereignty of an intellectual elite and bankers”.
The Global Governance scenario imposes a totalitarian agenda of social engineering and economic compliance. It constitutes an extension of the neoliberal policy framework imposed on both developing and developed countries. It consists in scrapping “national autodetermination” and constructing a Worldwide nexus of pro-US proxy regimes controlled by a “supranational sovereignty” (World Government) composed of leading financial institutions, billionaires and their philanthropic foundations. (Michel Chossudovsky
, August 2020)
In the sections below we briefly review the dramatic impacts of the closure of the global economy focussing on bankruptcies, poverty, unemployment, the outbreak of famines and education. Most of the figures quoted below are from UN sources, which tend to understate the seriousness of the global crisis.
The Wave of Bankruptcies
The wave of bankruptcies triggered by the closure of the World economy affects both Small and Medium Sized Enterprises (SME) as well as large Corporations. The evidence suggests that small and medium sized enterprise are literally being wiped out.
According to a survey by the International Trade Centre, quoted by the OECD, pertaining to SMEs in 132 countries:
“two-thirds of micro and small firms report that the crisis strongly affected their business operations, and one-fifth indicate the risk of shutting down permanently within three months. Based on several surveys in a variety of countries, McKinsey (2020) indicates that between 25% and 36% of small businesses could close down permanently from the disruption in the first four months of the pandemic.” (OECD Report
, emphasis added)
In the US, the bankruptcy process is ongoing. According to a group of academics in a letter to Congress:
“we anticipate that a significant fraction of viable small businesses will be forced to liquidate, causing high and irreversible economic losses,. “Workers will lose jobs even in otherwise viable businesses. …
“A run of defaults looks almost inevitable. At the end of the first quarter of this year, U.S. companies had amassed nearly $10.5 trillion in debt — by far the most since the Federal Reserve Bank of St. Louis began tracking the figure at the end of World War II. “An explosion in corporate debt,” Mr. Altman said” (NYT
, June, 16, 2020).
With regard to small businesses in the US:
“almost 90% of small businesses experienced a strong (51%) or moderate (38%) negative impact from the pandemic; 45% of businesses experienced disruptions in supply chains; 25% of businesses has less than 1-2 months cash reserves.” (OECD
The results of a survey of over 5 800 small businesses in the United States:
“… shows that 43% of responding businesses are already temporarily closed. On average, businesses reduced their employees by 40%. Three-quarters of respondents indicate they have two months or less in cash in reserve. …” (OECD)
Mass Unemployment is Now Worldwide
In an August report, the International Labour Organization (ILO) confirms that:
“The COVID-19 crisis has severely disrupted economies and labour markets in all world regions, with estimated losses of working hours equivalent to nearly 400 million full-time jobs in the second quarter of 2020, most of which are in emerging and developing countries…(ILO, 2020a). …
Among the most vulnerable are the 1.6 billion informal economy workers, representing half of the global workforce, who are working in sectors experiencing major job losses or have seen their incomes seriously affected by lockdowns.
The COVID‐19 crisis is disproportionately affecting 1.25 billion workers in at-risk jobs, particularly in the hardest-hit sectors such as retail trade, accommodation and food services, and manufacturing (ILO, 2020b). Most of these workers are self-employed, in low-income jobs in the informal sector… Young people, for example, are experiencing multiple shocks including disruption to education and training, employment and income, in addition to greater difficulties in finding jobs.”
The ILO does not focus on the political causes of mass unemployment, namely the actions taken by the governments, allegedly with a view to resolving the Covid pandemic.
Moreover, the ILO tends to underestimate both the levels as well as the increase in unemployment.
Unemployment in Latin America
In Latin America, the average unemployment rate was estimated at 8.1 per cent at the end of 2019. The ILO states, that it could rise by a modest 4 to 5 percentage points to 41 million unemployed.
In absolute numbers, these rates imply that the number of people who are looking for jobs but are not hired rose from 26 million before the pandemic to 41 million in 2020, as announced by ILO experts…
These estimates of the ILO and the World Bank are misleading. According to the Inter American Development Bank (IDB)
, the increase in unemployment for the Latin American region is of the order of 24 million, with jobs losses in Colombia of the order of 3.6 million, Brazil, 7.0 million and Mexico 7.0 million.
Even these figures tend to underestimate the dramatic increase in unemployment. And the situation is likely to evolve in the months ahead.
Unemployment in the US