S Gurumurthy is a chartered accountant by profession, but wears several other hats. He is the National Convenor of the Swadeshi Jagaran Manch, a mass-movement committed to the promotion of swadeshi industries and culture. He is also a renowned columnist, writing regularly for The New Indian Express and other publications. Often, he also acts a mediator in large industrial disputes.
The American economy has survived because it was able to saddle the bad loans on to other countries. The moneys lent on sub-prime basis was not American money. The mortgaged loans of the US banks belong to banks in the Middle East, in Korea, in Taiwan or even in India. It is a US crisis at global cost. That is why it affected the world.
In the US, the recession will not be allowed to set in on the consumers’ front. They will print more dollars, put it in people’s pocket and ask them to buy.
It can end all of a sudden. But it will not be the melt down of the Anglo-Saxon economic model. It will also be the weakening of the political structure, which is based on atomizing individualism.
Naturally! Is it going to come to a grinding halt? It is the question that everybody is asking today. I feel that it could be the end to this type of economy and reconsideration of the political premises that support this type of economy and, the end of dismembering the family to promote economics. Unless a larger dimension of life is integrated into politico-economic philosophy and policy-making, there is no answer within the present Anglo-Saxon Model. How to organise life, what is the place of men and women, of parents, of children, or, of elders? Unless there is an intellectual effort and social movement to reverse the degeneration, which has occurred mostly in the last 20-30 years, I see no possibility for this crisis to be averted. It is not an economic crisis, it is only the economic effect of a moral, intellectual, social and cultural crisis.
All family-oriented societies, where atomizing individualism is less dominant, have a role to play, not only India which is of course a significant country. How has Japan, which is a technologically-advanced country, been able to avoid the consequence of the crisis that the US has got into? Because of the family and community structure.
But they also awarded the Nobel Prize to (Fischer) Black and (Myron S) Scholes. The model for which they got the Nobel Prize in 1997 has greatly leveraged and risked the American and global economies. It legitimised and celebrated the Leveraging Model.