Reversals II

• The global financial crisis demands every part of social strata to post austerity measures. It is really a different story for the poor citizens who are already struggling to make ends meet ever since. For them, sudden increases in food prices can literally make a difference between life and death.

• Country’s persistent dependence on exports, foreign investment and debt– including official development aid that ends up as foreign debt– are the crates that leads economy’s vulnerability.

• Immediate economic relief measures have to be taken to at least counter attack the inflationary impact of the financial crisis from the regressive taxation in virtue of RVAT on oil up to the basic commodities. Other urgent measures include implementing a nationwide across-the-board wage hike, increasing the budget for social services, and suspending debt payments because of the people’s immediate need for resources and support.

• At these days’ pressing circumstance, many economists argue that this will serve as the right moment for developing countries to take advantage of the current financial crisis (falling prices). If this is the case, we may see that this is America’s prime concern of possibly taking out their superpower status.

• As what the people have observed, states still have an essential role in a country’s economic undertakings. UP Development Studies Professor John Ponsaran explained that states serve as regulators, as well problem solving units.

• Capitalism is currently experiencing its mayhem. As global financial crisis drowns capitalists’ societies, its rigorous effects render chaotic reversals.
  

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*Points from "Reversals", academic paper regarding the global financial crisis. Econ 109: The History of Economic Doctrines.