Opinion - Going Global

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Going Global

“History does not repeat itself, but it rhymes.”  Mark Twain, a 19^th century writer and philosopher, uttered those words without the slightest knowledge or inclination that their true meaning would be revealed 150 years later during one of modern history’s toughest times.  The current economic crisis exhibits one simple premise; today foreshadows tomorrow, for society follows trends.  This concept of “history rhyming” is the single most imperative idea that the Y generation should apply for success and safety in the increasingly difficult, global environment.

Today’s global marketplace is seamlessly interconnected, or “flat”.  Unfortunately, this integration is epitomized by the current global financial meltdown.  In order to prevent another crisis from reoccurring in the future, the actions of companies and governments alike need to be more utilitarian – creating the greatest good for the greatest amount of people.  Safeguards must be implemented to protect humankind from its greed in the future; safeguards rooted in the understanding of prior bubbles, creating awareness of their symptoms and signs, and resulting in a self-preserving, ethical oversight.

Now how do bubbles apply to technology, the Internet, multinational corporations, and ultimately the global marketplace?  If one country today experiences a crash following a boom, then this effect will magnify itself exponentially onto its trading partners.  For instance, the United States, now with fewer funds, shrinking demand and enormous debt, can no longer purchase as many goods and services from its significant trading partner, China. That decrease in demand from the US will cause China to generate less income, therefore making them unable to trade to get their desired needs as well, say oil, with the Middle East.  That loss of revenue and shrinking demand in the Middle East will in turn cause a cut in the supply in oil, therefore affecting every country that needs this rare commodity.  This trend continues, creating a domino effect.  Essentially, today’s flattened global environment results in each country having a vested interest in every other country, regardless of intent.

For these reasons, a country and its citizens must be aware of global bubbles and economic trends.  All bubbles share consistent attributes and traits; primarily, there is an abundance of easy credit applied to an industry where historical criteria is ignored, and every person is doing “it” with full confidence.  “It” can easily be replaced with purchasing a dot-com stock, an interest free mortgage, or dating back to 1637, the Tulip Bubble where the bulb of the flower was the most desired product in the world, only to have it become worthless almost overnight. 

Given this relationship between countries, one must ask, “What is next in the global environment?”  For the next decade, the world will be in a poor status quo due to government bailouts and inflation, and sadly, we are all wedged in it together.  To escape this global meltdown, essentially and oddly enough another bubble, or two, will save us.  They will inevitably be the “Alternative Energy Bubble” and the “Nanotechnology Bubble”.

The world can no longer rely on overpriced oil (some believe Peak Oil is here) nor should stable nations deal with irrational, terrorist funding entities. Additionally, the burning of fossil fuels is destroying our planet causing global warming. Clean, renewable, cheap technology will spawn in the next decade that will change the way the world functions. This alternative energy boom will birth new companies, create modern jobs, and save the planet.

The nanotech bubble will also emerge. While still in its earliest stage, this micro sized technology will be used to manufacture new medicine, electronics, and energy production.  For example, nano-tech has already been utilized to purify and desalinate water, improving the quality of life for millions in third world countries that now have access to uncontaminated drinking water.  Just for perspective and range of use, it has also been used for cosmetics, bacteria-proof knives, and stain-resistant pants.

The future of the global environment lies in the hands of technology, which has an expanding curve of innovation. Utilizing the rhetoric of  “history rhyming”, we must acknowledge these future bubbles, capitalize on them, and figure out a safe, pragmatic exit strategy in order to ultimately return to a normal period of steady growth between all countries.  It is evident the world will continue to make technological progress, but hopefully it will only be a brief matter of time until countries unite and follow in the words of Greek philosopher, Socrates where he states, “ I am not an Athenian or a Greek, but a citizen of the world.”

 

Jonathan Ross Shriftman

College Trillionaire