At the same time, it is a necessary and unavoidable analysis. Measuring the impact of depression helps us put the right patches on it, allows us to better understand the states and systems in which we live, and opens up necessary structural debates. It is in moments of crisis when the seams of the system are best seen and when more is learned about its operation. Why, for example, has the US suffered such a radical reduction in employment, or at least much more radical than other Western countries? It has to do with how their economic system and growth model are designed.
As the economist Mark Blyth explains, in crises "the US tends to protect capital and simply let labor adjust through unemployment." This Whatsapp Mobile Number List protects the big ones, capital, while workers bear the highest cost, explains why the country is suffering so much from the pandemic. According to Blyth, The crisis is also revealing the seams of the European Union: at the moment of truth, it is simply a common market.
The US growth model works well as long as unemployment is low, wages are used to spend, and credit is recycled to cover the differences between wages and costs of consumers and businesses. But when markets freeze and fail to price assets correctly (no one knows how much United Airlines stock is worth because we don't know when Americans will be able to fly again), the growth model breaks down. down.4 The US welfare model also follows this logic. Their social security, too contributory and linked to employment (the vast majority of those who work have health insurance because they have a job and the company provides it, without work there is hardly any social security), leaving many workers. In addition, according to data from 2018, 18 million Americans lacked any type of health insurance.
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