After more than a year of civil war and bloodshed in South-Eastern Ukraine, the government in Kiev has to make a choice on what to do in the near future. The country is in a state of bankruptcy, the streets of Kiev are full of so called “patriotic” battalions who are actually neo-Nazis, people have no money to even buy essentials like food and medicine. While the government is still pledging that the EU and the US are going to help and Ukraine is going to turn into a paradise, the people in Ukraine start to feel like they were misled, as they truly were. So, the government has several options:
Mikhail Khazin is Russian economist, socially active person and president of the expert consulting company “Neocon”. Khazin is famous for his exact prognoses about the present financial crisis. Here is our translation of one of his video monologues that was published by Russia.ru in 2009. Although the video was made five years ago, its actuality is indisputable.
Natural disasters and war situations do not exist only in the movies. We see such crisis happening all the time somewhere in the world and no one is immune. Unfortunately war becomes more and more expected in some countries and if we add the escalating riots in many other places along with the civil war possibilities you should realize that you have to be ready for such events. Not to mention the natural disasters that happen all around the globe – hurricanes, extreme colds, floods, earthquakes, etc. These are all extreme situations and most people don’t have a basic preparation and survival skills.
The crisis of the neoliberal political doctrine is in fact a crisis of the economy based on cheap labor. Although the downturn is not ubiquitous, the insecurity of the markets is embarrassing enough. In recent years, the system proved to be quite ineffective and the question is whether there is an alternative to cheap labor.
We are getting more and more tired of being told that the end of crisis is coming. Among the wide public discussions on the topic stands out the great economic ignorance of many people, who, despite being deeply affected by the crisis, hardly understand economic terms that are applied in everyday life.
Money and value
Sad but true – talking about wealth, it is clearly visible that many think that it is something like Uncle Scrooge swimming in his money in the treasury. Actually money is a derivative of value and value is a characteristic of goods – no matter what the goods are – gold, petrol, bread, etc. When money was introduced in ancient times, it was meant to replace the simple exchange of one commodity for another and thus make trade easier.
Liberalism is now the dominating ideology in the world. It is said to have won the battle with all kinds of totalitarian regimes as long as it established free market all over the world and helped US become “World’s Policeman”. It is strange that the crisis of liberal values occurs after liberalism became the most widely-spread ideology. Actually, the key to the explanation are things that unexpectedly started coming along with the expansion of the liberal society.
Freedom for the individual
It seemed a good battle-cry for those who wanted to start their own business, especially in the post-socialist countries in Eastern Europe. It is not hard to understand why – in the so called Eastern Bloc collectivism ruled, after that there was a reaction against this collectivism and many hoped that private enterprise will make things better. For some of them it really did.