The Global, Economic, Financial Crisis:
We need something new.
A paradigm shift in our thinking

Dr. Ichak Adizes

A blog by Dr. Ichak Adizes

I am in Moscow. Watching the BBC. There is a live round table discussion with very prominent economists as to what to do about the global, financial, economic crisis, in the USA and in Europe. Their concerns: unemployment, declining economic growth, recession, potential for country defaults etc.

Around the table are the managing director of the IMF, the CEO of Pimco, a distinguished professor of economics from Chicago and another person with a heavy Italian accent whose name I failed to record.

To summarize what they are saying: there is a crisis of unemployment, the financial markets are sick and there is declining economic growth. Result: a serious crisis of a potential for a double dip recession and potential for a default by some countries.

They recommend different solutions how to solve the financial crisis, how to improve the rate of employment etc.

The common denominator to their solutions is that they are trying to get back to what we HAD before, which is full employment, healthy financial markets and economic growth.

It will not work.

If we succeed to go BACK, it will be only a temporary solution and the crisis will come back as a tsunami, much bigger, later on.

Why?

Let us analyze the problem.

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