While the aftermath of the Covid 19 Pandemic is likely to be disastrous not just for this country but for counties and individuals across the world, it doesn’t necessarily have to be. In this thread I’m going to suggest how the worst might be avoided. 1/
First, while the probable negative effects are being commented upon, there isn’t much evidence of any co-ordinated planning to offset the anticipated effects of the massive escalation of global and individual debt. 2/
The likelihood is that countries across the world will crippling themselves to make debt repayments & probably cut the very services which have worked so hard to help those afflicted in the pandemic. 3/
There is expected to be a worldwide recession with huge job losses, which, indeed we are already beginning to see for example, in the airline industry. I don't believe it has to be this way. 4/
The economically depressive impact of the pandemic would enable the worst of the economic consequences to be offset by a coordinated debt reduction plan. The fact is governments can create money but usually they can’t for the very good reasons. 5/
(1) Money creation tends to fuel inflation & (2) it also tends to devalue the currency in which the "new" money being created. The depressive effect of the pandemic, if necessary in conjunction with other measures, could, in the present climate, take care of the first. 6/
But the second could only be avoided by coordinated global action taken by the world's governments because only that would keep parity between individual currencies & preserve stability. 7/
Crudely I am suggesting there could be a worldwide "debt reset" (not just debt due to the pandemic but debt globally) with national and individual debt written off but creditors still being repaid (probably over time) from centrally created money. 8/
In purely national terms, in the UK there could be an end to austerity, provision made to fund the health service & protect it from creeping privatisation & a host of other problems we cannot currently fix because of the servicing of debt could be addressed. 9/
But the U.K. has had austerity light in comparison with Greece & Italy & Spain, who themselves have had it light in comparison with the effects of the historic legacy of Third World Debt. 10/
Normally this would be pie in the sky but - & I know it seems almost sacrilegious to say this of something that has caused so much suffering around the globe - this but the pandemic has potentially created a huge opportunity. We just need the vision to seize it. #DebtReset 11/11
@threadreaderapp please unroll #DebtReset recovering economically from Covid 19.
