If you survive something like that, you might go on in life never being able to trust anyone again, I suppose. In my case, it has made me very aware of manipulation, no matter how slight.
In the previous post here, I wrote about what I see as an appallingly short attention span by folks when they scan social media, and its connection to my withdrawal from platforms like Face-Book. One of the main reasons for that post, and this one, is a shiver up my spine - a shiver of fear that signals danger from manipulative people, organizations, or worse, foreign governments.
Much too often I have seen some political or social commentary posted and have checked the 'facts' independently, only to find that the whole article was built upon fabrications. So-called authorities being quoted didn't say any such thing, for instance.
In my previous post, we saw how a slick presentation, referring vaguely to 'a study' can make you confident that something that you suspect to be true has, in fact, been proven.
This sort of 'error' is not always unintentional. What is worse, however, is that gullible, but well-meaning folks repost and comment on the lies. I might have done it myself! They fall into the trap of those who want us to feel part of a social movement for change ... they are participating in their own grooming.
During this pandemic, more people will be relying on soundbites and catchy articles for guidance. How can anyone manage to make sure that there is truth in what we read or see on social media?
I can't shake that feeling that we are being groomed.
~ Ripe for the picking ~
Who is in charge of the harvest?
I am not alone in wondering this, of course:
Hi Deanna,
ReplyDeleteYou may not entirely agree with my comment but hopefully it provides some food for thought. Don’t you think all crisis’s will always provide the catalyst for dangerous ideas, just as opportunism begs the predatory moves by those of malevolent intent, who patiently lie in wait. Sure, there will be a bit more fruit on the vine to pick by the opportunists.
But isn’t conflating that aspect with the ugly side of capitalism (as in the clip) as in drawing a parallel to misaligned economics drawing too long a bow ?
Past radical, and then considered dangerous ideas in economics by the likes of Keynes, offered light at the end of the depression tunnel, only to be truncated by monetarists such as Friedman.
After the monetary cavalry ( QE) has been rolled out a mixture of supply and stimulus measures I think is appropriate along the lines suggested in most parts of the world.
In that respect the economists in China are no different to those in the west- theories will always be hijacked to some extent by the worst traits of human nature that inevitably come out in a crisis. But get ready for some old fashioned Keynesian investment in China with massive infrastructure spending (to use the investment multiplier) which I believe will lift their economy out of the morass much more quickly that the west.
Best wishes
You gave me a lot to think about. I believe my fears to be justified, if not in the specific, then certainly in the general. We must be careful to avoid having a measure that seems, and may be, supremely logical now, turn into a permanent situation.
DeleteFor example, in Canada we have a great economic dependence upon the oil and gas industry. It is in crisis at the moment. This has no, or little, connection to the pandemic. And yet, we see that industry holding out their hand for federal funds that are designated for support of businesses that are in danger of failing because people are staying home in isolation.
It seems to me that if ever there was a time for this nation to invest in renewables, it is now. Yet that too has nothing to do with COVID-19.
We all have our wish list to advocate. Should some get priority seating at the table where goodies are being given out?
Hi Deanna,
ReplyDeleteThe short answer to direct help to the oil and gas sector is no, that was never logical, just as it’s isn’t now. Propping up companies that are on their knees is fraught with danger unless it can be shown to be a temporary measure related to the present Corona virus crisis. Furthermore, maany large energy companies in the world today want to get into renewables and phase out sensibly fossil fuel dependency and over dependence on oil or at least reduce their carbon footprint. What holding them back is the lack of market based mechanism for a high trading price to be put on carbon.
How assistance is to be provided around the table is largely a matter of uncommon common sense. But now is definitely not the time to hold back on spending as you will bring into play the economic paradox of thrift, the more you hold back the bigger the future deficit as the bigger the looming recession. That is another aspect to consider. I see your government plans to spend just over a trillion dollars all up and presume moves to reduce the impact of the virus will be very similar to the responses here.
For instance yesterday, our RBA cut its cash rate to a record low 0.25 per cent, announced a very large line of credit to banks to extend cheap, 3 year loans to small-and-medium-sized businesses and unveiled Australia's version of quantitative easing. Although a modest intervention into the capital markets I expect that it will gather steam and keep liquidity high whilst dampening down rates.
On top of that the government has provided broad based stimulatory measures targeted to individuals and predominantly small business to help keep then afloat. The banks are collectively providing a six-month holidays on loan repayments for small business loans, including loans secured against a residential mortgage, car loans and personal loans with extension to cover mortgage borrowers hit by the virus fallout.
That will hit the banks' bottom lines - though not nearly as much as if those borrower’s end up falling into the chasm. Our prudential regulator, APRA, will allow banks to run down their very strong capital buffers built up substantially since the GFC to help fund all of this. The CBA for instance has enough capital to go for a year without having to tap into capital markets. Canadian banks are also very well capitalised and I expect they will follow suite. They are the strongest in the world and you may recall they came thorough the GFC relatively unscathed.
Also current moves are afoot to provide a safety net for workers rather than a direct stimulus to demand. There will be big increases for a welfare wage for workers who lose their job, or are threatened with losing their job because of the coronavirus shutdown.
Another measurers are on the table, such as allowing people to prematurely tap into their superannuation to tide them over.
Yet other measures (case by case basis) involve the government's waiving $715 million of fees and charges for Qantas, Virgin and regional airlines. There are freezes on government charges and various state measures I expect will apply equally to your provinces in Canada ?
None of his is rocket science eh? I expect similar measures in Canada adding up to about 500 million will be swiftly implemented?
Best wishes