A return to normality a phrase repeated countless times by politicians, businesses and most of all the public. After such a severe crisis the old world despite all its caveats is a tempting prospect. A return to employment for most if not all, the devolution of our basic freedom to go just about wherever whenever we please and the general sense of stability that was felt before the pandemic.
What would we be returning to?
However, there can be no return to normal. A return to normal would be a failure to acknowledge the socio-economic problems the virus laid bare. Just over a decade ago, following the great recession: governments, banks and corporations moved quickly to cover up the structural problems our economies faced and return to normal. As a result, the inequality that had been growing at an unprecedented rate since the 1980s continued to spiral out of control. Socio-economic insecurity spread and large swathes of our communities became vulnerable to even very temporary disruptions to their incomes. The 2019 UN Global Poverty report found that poverty is everywhere whilst inequality within countries is massive. Over 1.3 billion people mostly in Asia and Africa were faced with multi-dimensional poverty due to insufficient access to; education, medical services, employment and food.
Economic hardship was by no means reserved for those in the developing world. Estimates by the United Nations found that 1/5 of the British population was living in poverty an astounding figure for the 5th wealthiest country on the planet. In the United States, 3 people held more wealth than the bottom 50% of the population 45 million of whom lived in poverty. Whilst Across the European Union poverty rates had barely recovered from the effects of the 2008 crash.
The exponential rise in inequality was justified repeatedly with a recycled quote from a John F. Kennedy speech in 1963: a rising tide lifts all boats. This metaphor has been the motto of Trickle-Down Economics for decades. The pandemic has confirmed its failure. The rising tide has not bought us all prosperity but instead launched a handful of super-yachts into the stratosphere: leaving millions at the bottom scrambling to stay afloat.
Whilst the number of people struggling to make ends meet increased our environment continued to decay. Environmental policy was side-lined in favour of GDP growth. Promises of reducing fossil fuel use and building more sustainable economies proved to be half-hearted at best, and empty at worst. The COVID-19 must lead to change both economically and environmentally.
What do we build now?
COVID-19 has exposed the dangerous reality of inequality. The wealth and power of the richest members of our society has continued to rise, whilst overall poverty has increased rapidly both in the developed and developing world as people living pay-check to pay-check lost their incomes. Our economic system requires urgent reform. Incremental change will not suffice. Reducing inequality and working towards Environmental sustainability must take centre stage in our recovery plans.
Investment In Education
Access to education has long been considered a levelling force in our society. A UNICEF report found that each additional year of education boosts a persons income by 10 per cent. Countries in both the developed and developing world must increase investment into education. According to the World Bank, developing countries that have had the most success in improving education standards focused heavily on increasing access to primary and secondary education. The International Community should provide support in this matter by ensuring that lenders refrain from demanding debt re-payments that wouldresult in cuts to education budgets.
The developed countries should focus on tertiary education and training programs to meet the demand for high skilled labour. Access to higher education and other training programs must be made accessible to those with lower incomes. This can be achieved via reductions in debt burdens placed on those who need to borrow money to attend university and by offering more flexible re-payment schemes.
Greening Our Economies
The devastation reeked by COVID-19 must not distract us from the most urgent threat faced by humanity: climate change. The old system was failing to come to grips with this issue. Emissions targets were missed, government support continued to flow into the fossil fuel industry the IMF estimated that $5.2 trillion in subsidies per year and sustainable energy initiatives remained underfunded. Following the Great Depression, the United States took a huge leap of faith with the FDRs New Deal to pull the country out of the depths of Economic depression. It is time for this generations leap of faith against an even more pressing threat than economic depression: climate change.
The Green New Deal is a policy initiative that was born in the United States but has since spread across the globe. It has been discussed by leading politicians as well as grassroots climate activists. The deal aims to overcome climate change and environmental degradation via huge state-led investment into renewables along with divestment from the fossil fuel sector.
President Macron of France committed 35 billion of the 100 billion French recovery package to green energy initiatives. This is a positive move from Europes second economy. Others should follow suit and go further with their commitments to a green recovery.
As France has shown these investments will be costly. In a world more riddled by debt than ever, increasing investment may well appear counterintuitive or even impossible. For this reason, certain groups will pressure governments to implement austerity measures to make debt payments. This must be avoided. Austerity will only further contract the economy, increase inequality and prevent necessary structural changes to our economy from being pursued. None the less, the question will have to be answered. How do we fund our recovery?
The answer to the calls for austerity? Tax reform.
No taxation without representation exclaimed the early American colonials as they dumped tea into the Boston harbour. This protest by the colonials in 1773 resonates strangely with the modern world. Due to the failures of governments and intelligence off private interests to ensure our tax systems keep pace with the globalization of finance: loopholes and tax havens have made the ultra-rich immune to taxation. They now haverepresentationwithout taxation. Whilst the majority are overtaxed and under-represented. Joseph Stiglitz, Economics Nobel Laureate, states that a progressive taxation system must replace our current regressive system. Mr Stiglitz puts forward a proposal arguing for the need to remove loopholes and tax heavens whilst the levying of a tax on financial transactions. This will raise funds for investment and increase equality whilst avoiding the need to resort to higher taxes for the majority of people.
The removal of tax-loopholes will guarantee that the tax that ultra-rich and corporations are obliged to pay can be demanded by governments. Estimates vary massively on how much tax is dogged every year, but the figure is in the trillions according to the Tax Justice Network with at least $36 trillion are hidden away in various tax heavens. Collecting these funds is not an attempt to raise taxes but an attempt at preventing the manipulation of tax-rates by those in the top tax brackets. This would do a lot towards resolving theissue of representation without taxation, whilst providing governments with funds for their recovery plans.
A financial transaction tax of just 0.1% on trading transactions in the United States would raise $777 billion over ten years. This tax is inherently progressive due to most large trades being carried out by the very wealthy members of society. Urban-Brookings Tax Policy centre predicts that the top 1% of Americans would pay 40% of the tax whilst the bottom 60% would account for just 11% of the tax. The European Union has already considered the implementation of such a tax estimating that it would raise $66 Billion per year. These funds would contribute greatly to our recovery efforts and reduce spending deficits.
The Chinese word for crisis is comprised of two characters: one representing danger and the other opportunity. The danger is yet to pass, COVID-19 has pushed both the wealth and health of millions into doubt. Despite the lingering threat, a bold plan for recovery must be implemented now. If we wait for the dust to settle the opportunity to build a better future may well pass us by.
Peter has been writing for the OWP since early 2020. He studied Politics with History at the University of Keele where he focused on conflicts in the Middle East, economic development in South East Asia, and the European refugee crisis. He is interested primarily in how economic development can bring about peace and stability in the developing world.
Related
Read more here:
- Republican-controlled Idaho House passes Texas-style immigration bill Idaho Capital Sun - Idaho Capital Sun - April 2nd, 2024 [April 2nd, 2024]
- Georgia judge rules that Republican Brian K. Pritchard voted illegally - The Atlanta Journal Constitution - April 2nd, 2024 [April 2nd, 2024]
- Trump pays $175m New York fraud bond as Truth Social stock takes huge hit- live - The Independent - April 2nd, 2024 [April 2nd, 2024]
- Judges raise alarm over Trumps attacks - The Washington Post - April 2nd, 2024 [April 2nd, 2024]
- Why Trump's alarmist message on immigration may be resonating beyond his base - PBS NewsHour - April 2nd, 2024 [April 2nd, 2024]
- House Republican condemns Democrats sexualization of everything after Easter controversy - Washington Examiner - April 2nd, 2024 [April 2nd, 2024]
- Emery County Republican Lincoln Day Dinner and Convention Hosts Large Crowd and a Full Slate of Candidates - ETV News - April 2nd, 2024 [April 2nd, 2024]
- Who are the candidates in the West Virginia Republican Governors Forum? - WBOY.com - April 2nd, 2024 [April 2nd, 2024]
- The Republican Justices Are Slow-Walking a Key South Carolina Redistricting Case - Balls & Strikes - April 2nd, 2024 [April 2nd, 2024]
- "Never forget": Trump unloads on Republican "cowards and weaklings" in Easter Sunday meltdown - Salon - April 2nd, 2024 [April 2nd, 2024]
- Analysis | The revamped Republican Party turns Trump's lies into a loyalty test - The Washington Post - April 2nd, 2024 [April 2nd, 2024]
- Trump and his MAGA movement stormed the Republican establishment. Now they have become it. - The Fulcrum - April 2nd, 2024 [April 2nd, 2024]
- Senator Helming and Senate Republican Conference Unveil Legislative Package to Expand Availability and Access to ... - The New York State Senate - April 2nd, 2024 [April 2nd, 2024]
- States that lean Republican report more COVID vaccine-related adverse events, study finds - University of Minnesota Twin Cities - April 2nd, 2024 [April 2nd, 2024]
- House Republican condemns Democrats' 'sexualization of everything' after Easter controversy - Colorado Springs Gazette - April 2nd, 2024 [April 2nd, 2024]
- Infuriated House members plot early exits due to Republican dysfunction - Axios - April 2nd, 2024 [April 2nd, 2024]
- State reviewing cop-involved shootings - Waterbury Republican American - April 2nd, 2024 [April 2nd, 2024]
- RNC plan for 2020 denialist to head election integrity unit raises alarms - The Guardian US - April 2nd, 2024 [April 2nd, 2024]
- McConnell casts doubt on border and Ukraine aid deal as GOP fury threatens both - NBC News - January 25th, 2024 [January 25th, 2024]
- Biden Vetoes Republican Measure to Block Electric Vehicle Charging Stations - The New York Times - January 25th, 2024 [January 25th, 2024]
- Wilson Co. Republican Party of TN shares controversial meme referencing hangings - News Channel 5 Nashville - January 25th, 2024 [January 25th, 2024]
- When is the Nevada primary, caucus? What to know about dual contests. - USA TODAY - January 25th, 2024 [January 25th, 2024]
- Electability is all Democrats discussed in 2020. In 2024, Republicans don't care - NPR - January 25th, 2024 [January 25th, 2024]
- Trump racks up endorsements from Republicans in Congress as any resistance that once existed fades - The Associated Press - January 25th, 2024 [January 25th, 2024]
- 'Betrayal': Arizona GOP chair resigns after recording of 'offer' to Kari Lake - USA TODAY - January 25th, 2024 [January 25th, 2024]
- It's Fair to Ask: Is the Republican Race Over? - The New York Times - January 25th, 2024 [January 25th, 2024]
- 'No Time to Go Wobbly': Why Britain Is Lobbying U.S. Republicans on Ukraine - The New York Times - January 25th, 2024 [January 25th, 2024]
- The 2024 Republican Primary Was Over Before It Began - The New Yorker - January 25th, 2024 [January 25th, 2024]
- More GOP holdouts backing Trump as leaders seek unity - Roll Call - January 25th, 2024 [January 25th, 2024]
- House Republicans accuse Penn of 'failure to address antisemitism on its campus' - ABC News - January 25th, 2024 [January 25th, 2024]
- Four reasons why Nikki Haley may be staying in the race for the Republican nomination | Brookings - Brookings Institution - January 25th, 2024 [January 25th, 2024]
- The United Auto Workers union endorsed Biden today - NPR - January 25th, 2024 [January 25th, 2024]
- After Early Primary Victories, Republicans in Congress Fall in Line Behind Trump - The New York Times - January 25th, 2024 [January 25th, 2024]
- Kari Lake is running for U.S. Senate from Arizona. The AZGOP tried to stop her. - NPR - January 25th, 2024 [January 25th, 2024]
- New Hampshire exit polls: Republicans were just half of voters in their own primary - Reuters.com - January 25th, 2024 [January 25th, 2024]
- NH primary plays outsized role in determining future of the Republican Party - NPR - January 25th, 2024 [January 25th, 2024]
- Trump wins 2024 New Hampshire primary - The Associated Press - January 25th, 2024 [January 25th, 2024]
- House Republicans now have one of the smallest majorities in history - NBC News - January 25th, 2024 [January 25th, 2024]
- Time to back Trump: Republican donors accept the inevitable - The Guardian US - January 25th, 2024 [January 25th, 2024]
- Trump wins New Hampshire primary, further solidifying path to 2024 presidential election - Axios - January 25th, 2024 [January 25th, 2024]
- Does Nikki Haley have a chance in South Carolina's primary? Here's what some voters are saying - ABC News - January 25th, 2024 [January 25th, 2024]
- Trump and Biden shift focus to general election rematch as Haley fights on - Reuters.com - January 25th, 2024 [January 25th, 2024]
- Biden: Its clear Trump will be Republican nominee - The Hill - January 25th, 2024 [January 25th, 2024]
- Election 2024: Haley Heads Home to Keep Up Fight as Trump and Biden Look to Rematch - The New York Times - January 25th, 2024 [January 25th, 2024]
- AP Votecast: How and why New Hampshire voted in 2024 primary - The Associated Press - January 25th, 2024 [January 25th, 2024]
- Why Trump's critics see his New Hampshire win as a positive sign for 2024 - POLITICO - POLITICO - January 25th, 2024 [January 25th, 2024]
- Republicans zero in on a new border the one with Canada - NBC News - January 25th, 2024 [January 25th, 2024]
- Arizona Republican Party boss tried to keep Kari Lake out of Senate race by dangling job - The Arizona Republic - January 25th, 2024 [January 25th, 2024]
- Iowa Republican caucus date set for Jan. 15, 2024 - POLITICO - POLITICO - July 9th, 2023 [July 9th, 2023]
- Republicans sound alarm over DeSantiss sagging campaign - The Hill - July 9th, 2023 [July 9th, 2023]
- Opinion | Can the Republican Party Reverse Course? - The New York Times - July 9th, 2023 [July 9th, 2023]
- Reagans Republican Party Wouldnt Think Twice About Aid to Ukraine - Yahoo News - July 9th, 2023 [July 9th, 2023]
- Trump Wont Campaign at a July 4 Parade, but Other Republican ... - The New York Times - July 9th, 2023 [July 9th, 2023]
- Nearly a quarter of Republicans say classified docs charges make them more likely to support Trump: poll - The Hill - July 9th, 2023 [July 9th, 2023]
- Which Republicans Have Pledged to Support Their Nominee - The New York Times - July 9th, 2023 [July 9th, 2023]
- Calling robust Republican representation in Groton - theday.com - July 9th, 2023 [July 9th, 2023]
- John Roberts Is the Last Republican - New York Magazine - July 9th, 2023 [July 9th, 2023]
- House Republicans' Impeachment Fever Is a Gift to Democrats - The New Republic - July 9th, 2023 [July 9th, 2023]
- 'Boebert wokest Republican yet' The Durango Herald - The Durango Herald - July 9th, 2023 [July 9th, 2023]
- Ole Town Republican Party in a hole - theday.com - July 9th, 2023 [July 9th, 2023]
- Republicans Want to Mandate a Single Style of Architecture in ... - POLITICO - July 9th, 2023 [July 9th, 2023]
- Republicans Are Divided on Impeaching Biden as Panel Begins ... - The New York Times - July 9th, 2023 [July 9th, 2023]
- Impactful Quartet of Center-Right grassroots groups aim to advance ... - City-sentinel - July 9th, 2023 [July 9th, 2023]
- Ron DeSantis: 10 things to know about the Republican White House hopeful - The Guardian US - May 24th, 2023 [May 24th, 2023]
- Opinion | The Four Freedoms, According to Republicans - The New York Times - May 24th, 2023 [May 24th, 2023]
- Greene says no one is concerned about debt default in Republican conference - The Hill - May 24th, 2023 [May 24th, 2023]
- Republican concerns may halt permanent extension of expanded ... - New Hampshire Bulletin - May 24th, 2023 [May 24th, 2023]
- The Ever-Growing 2024 Republican Primary Field : The NPR ... - NPR - May 24th, 2023 [May 24th, 2023]
- Why the Republican Job Requirements Push Won't Actually Get ... - TIME - May 24th, 2023 [May 24th, 2023]
- Key Republican urges McCarthy, GOP to hold the line in debt ceiling talks - The Hill - May 24th, 2023 [May 24th, 2023]
- South Carolina GOP Passes 6-Week Abortion Ban, Sends Bill to ... - Democracy Now! - May 24th, 2023 [May 24th, 2023]
- Opinion | Vivek Ramaswamys Long Shot Run at the Republican ... - The New York Times - May 24th, 2023 [May 24th, 2023]
- Ohio Republican attack on higher ed will devastate our widely ... - Ohio Capital Journal - May 24th, 2023 [May 24th, 2023]
- Childless Adults Will Bear the Brunt of Republican Cuts to the Safety ... - The New Republic - May 24th, 2023 [May 24th, 2023]
- Opinion | George Santos Must Be Held Accountable by Republican ... - The New York Times - May 24th, 2023 [May 24th, 2023]
- Republican James Follweiler to be on ballot in Bethlehem City ... - 69News WFMZ-TV - May 24th, 2023 [May 24th, 2023]
- Why Republicans school board takeovers are faltering with voters - Vox.com - May 18th, 2023 [May 18th, 2023]
- Arizona Republicans have gotten most of what they wanted this year - The Arizona Republic - May 18th, 2023 [May 18th, 2023]
- Trump-backed Daniel Cameron wins GOP primary for Kentucky governor, will face incumbent Democrat Andy Beshear - Fox News - May 18th, 2023 [May 18th, 2023]
- DEI divide: Republicans and Democrats split on workplace diversity - USA TODAY - May 18th, 2023 [May 18th, 2023]