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Mahfi Egilmez wrote: What should be limited is our ambitions

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We continue to think about the big reset approach we are talking about these days. He wrote my first assessment on this topic in this blog (see the article in question: https://www.mahfiegilmez.com/2021/01/buyuk-sfrlama-great-reset.html) and my views on the great restructuring approach, which offers some adjustments to bring the capitalist system, which is constantly in crisis, into line with today’s conditions. I have serious doubts, especially after the global crisis created by the Washington Consensus approach, which pursues neoliberal policies, that capital-based regulations will benefit the world. If the world and the capitalist system are to be given a truly meaningful direction, all that must be done is to limit the passions of “growing at any cost.” If capitalism is to be given a new form, what must be done to develop a model of moderate growth that does not harm nature and the environment?

The chart below shows the growth of world GDP since 1980 (source: IMF, World Economic Outlook, October, 2020).

The reality shown by the graph is that growth has been forced to rise above the long-term average (potential growth), especially since the mid-2000s. In fact, implementation began in the 1950s, with global GDP doubling in the last 70 years. These pressures resulted in long-term inflation in the 1970s, followed by numerous financial crises, the 2008 crisis, the 2019 recession, and then the 2020 Covid-19 crisis. The final coldness of these crises can be seen in the table. If we take the growth of 1980-2000 as the normal way, we come to the conclusion that the growth that should have taken place after the 2000s should continue to follow the broken line. The graph shows us that exceeding this average, or in other words, the growth of passion created by the capitalist system in recent years, has led to crises. The way to prevent crises is to create environmentally friendly growth instead of rapid growth.

It is not just a matter of preventing the crisis created by capitalism. In addition to trying to prevent crises, the goal must be to create a world that is no longer a place to live, a place to live, and to leave a world to be lived for future generations.

Therefore, if a regulation is made in capitalism, it must be brought up as a restriction of passion. However, this constraint is not easy to apply, as developing countries need to grow rapidly to close the gap with developed economies. The only way to achieve this is to try to eliminate income inequality as much as possible by transferring income, wealth and technology from developed countries to developing countries.

We have seen in today’s unhealthy world, created by neo-liberal approaches, that resets that do not expect such approaches will not bring useful results for the world.


This article is taken from Mahfi Egilmez’s personal blog.


CLICK HERE | Mahfi E─čilmez wrote: Great reset


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