How Economics affects Discrimination

The economics of trickle-down Capitalism has proved to the world its powers to create
jobs and the consequential Middle Class of the modern day society. In times of relative
economic growth with short self adjusting cycles, supported from “easy” business laws
and regulations, in times of supply driven markets this system performed fine by building
and maintaining such industrial powers as US, Germany and Great Britain to succeed
higher then everywhere else’s Standard of Life and reduction of poverty, and general
liberalization by constant fight against discrimination because of color, religion or
nationality; such liberalization was brought and was supported by consistent continues
economic development. Thus how in the US from slavery a few Centuries ago President
Obama was elected, thus how in the current German National Soccer Team some of the
best players are from foreign descend; thus how London has become international Mega-
polis; in this very developed economies the constant fight against any discrimination has
risen people consciousness to higher levels when the economic conditions have given
opportunities to people from different descend and background to succeed in life
becoming productive members of their societies.

Such economic growth succeeded by the Most Developed Economies affected gradually
the rest of the world by opening countries and markets to the ongoing globalization and
by raising constant attention to the unacceptability of any discrimination: after the fall of
the Berlin Wall and after the China entering WTO, after the succeeded economic growth
and development by China, Brazil, India and many more countries around the globe the
acceptance of any discrimination as something normal has become less and less tolerable.
It also became obvious that discrimination works against economic growth on a pure
practical level by creating poor market conditions by destabilizing these markets by the
resistance of the oppressed and by the resistance of the societies of the Most Developed
Economies to accept import from places and countries that tolerate discrimination on
their territories. It is obvious from economic stand point that for any countries to develop
its economy a open border trade policies from the Most Developed Economies is needed
from one side access to high technologies in manufacturing and from another side access
to their markets are paramount. Thus the global processes of liberalization of countries
and reduction of discrimination are most definitely to continue.

However, the Great Recession of the 21st Century had a very negative effect on the
ongoing liberalization and the consequential reduction of discrimination of many
countries. Because of the economic stagnation: lack of Fiscal reserves and fast shrinking
National budgets the minorities that usually are in the bottom of these countries
economies were greatly affected bringing waves of national sentiments to the majorities
of these impoverished nations: from North to South from Easter Europe to East to West
in countries like Rumania, Bulgaria, Spain, and Ireland there have been less patience
toward minorities and immigrants, even in countries like Nederland and Great Britain
immigrants were becoming less tolerated by law or by the societies as a whole. The
economic crisis has shown to people how negative effect economic conditions could have
on the general liberalization from excessive nationalism and xenophobia, and even to turn
back many succeeded already liberties and ante-discrimination practices: such an
example are the open employment policies that numbers were either reduced or totally
dismantled by many countries in the conditions of this economic dismay, other example
are the financial policies for when before the Great Recession fiscal shortages were much
more tolerable and the inter-financial system in European Union worked very smoothly
in time of economic growth with the change provoked by the recession such fiscal
shortages exampled by Greece, Ireland, Poland and Portugal have become intolerable,
thus even when the European Union established a Fund to help these countries in case of
major default the accent was not their development or growth but their fiscal discipline
by reducing substantially their budgets, and because the minorities and immigrants
elsewhere are always on the bottom of these societies the prompted budgetary cuts first
and at most affected these unprivileged lower classes of minorities and immigrants.

Gypsies and immigrants, colored and any different from the majority individuals could be
on religious or descend were becoming less tolerated and accepted because of the Great
Recession; the economic consequences of the Great Recession of the 21st Century has
turned back history by the change of ongoing at the time liberalization and acceptance of
difference; economic struggle has brought back not only poverty to many minorities and
immigrants, but also it has brought back excessive nationalism and xenophobia to some
people that were totally away from such feelings; general unemployment and economic
stagnation, difficulties to meet the ends, business reduction are affecting anyone in one
way or the other reducing tolerance and philanthropy; the effect economic recessions
have on individuals and whole countries is very regressive indeed.

Under the pressures of the European Union to maintain low deficit Countries as Bulgaria
have cut their Medical and Social expenses to the bone depriving many from basic
medical and social services where such drastic cuts have affected at its most Bulgaria’s
Gypsies who even before the cuts were on the bottom of the society but after these cuts
they have become so impoverished that actually such conditions were not seen maybe but
in the beginning of the Last Century. The lack basic needs of food, medical help and
utilities are becoming vital for them to survive: the discrimination is not into physical
violence by the majority by the economic such that came as a consequence of the Great
Recession, and when these hardships affects the majority of Bulgarians in one way or
another the “tools” that could take the minorities out of their current situation such as
education and economic development are becoming more obscure by the day.

Therefore to talk about tight budgets and fiscal restrains is synonymous of to talk about
rising discrimination against minorities and immigrants.

In time of rapidly improving high technologies prompting rising productivity, fast

globalization and fast industrialization of vast economies of China, India, Brazil and
Vietnam the expectations of industrial development of many countries around the world
may prove futile; even in most industrialized economies outsourcing of manufacturing
and capital toward China may well shrink their fiscal reserves or at least reduce the size
and speed of economic growth, that consequentially might devastate even farther the less
developed economies fiscal reserves, that could result into rising discrimination against
minorities, immigrants, and the poor overall. When at the moment industrial production
adds to the majority of most economies GDP and Fiscal reserves the relation between
their budgets and industrial production is direct. Such direct relation is supported and
maintained by the Global Financial System of the World Bank, IMF and WTO which
system works very well in time of short cyclical global economic growth but performs
very poor in time of long term recessions and shortages of demand. When lending done
by the Global Financial System is smooth when lend capital is returned after short
recessions and helps economies revival when industrial production has generally shifted
and moved away from many economies of European Union and North America and at the
same time improving technologies have reduced employment even when manufacturing
employment still remains their that possibly of positive effect from high interest lending
is a delusion. Even farther, with the deepening fiscal shortages for many economies these
economies ratings come down and they start borrowing on even higher interest rates. It is
obvious that such “double jeopardy” Global Financial System may finally contribute for
the impoverishment of many countries and markets and their demise instead of their
economic development that lack of economic improvement will directly affect the issue
of discrimination against minorities, immigrants and anyone different by somehow.

Other factor that affects discrimination is the rising energy prices: the diminishing
quantities of Crude Oil, Natural Gas and other natural recourses has had devastating
affect to the less developed economies by rising utility and transportation expenses when
at the same time lack of industrialization has prompted their fiscal shortages, thus how
many economies have lost their ability to maintain fiscal reserves and budget to deal with
the lowest levels of their socio economic structure where the minorities and immigrants
were. Foster Fuels are diminishing by time and these are priced on a Global marketplace
therefore less developed economies deal with such rising prices much harder then the
most developed economies do. Such Global stagnation does not affect only less
developed economies but it most definitely affects the most developed too: rising crime,
poverty, shrinking consumption and expanding emigration in process in less developed
economies reduce export, industrial production supported by rising immigration the
ground for intolerance against anything different is growing too.

The dangerous Global pollution levels ask for prompt action to use technologies for low
emissions and maintain clean environment for the Earth to survive, but these new
requirements require a lot more expenditures by all countries, and because most of
renewable technologies are quite expensive and with low productivity they mostly go
toward expanses then toward profitable industrial production; such technologies reduce
competitiveness to even Most Developed Economies on the open global marketplace
where even without it lower employment expanses in other parts are more then enough to
trigger outsourcing, but the needed such expanses are totally out of reach for many less
developed economies with constantly shrinking standards of life and fiscal reserves. Thus
the expenses for cleaning the Earth environment will put additional pressures to the fiscal
reserves and the impoverishing of minorities and immigrants will go even farther.

Putting in context all of the above a natural global growth in the conditions of currently
used Global Financial System is quite improbable to reduce poverty and enhance fiscal
reserves for many economies to respond in constant lack of outsourced industrial
production, rising energy costs and expenditures so much needed to enhance renewable
energies to protect the Earth from catastrophe. The processes of modern “post” recession
very heavily alienate minorities and immigrants by establishing conditions of intolerance
and xenophobia and if major changes are not adopted by the Globalizing marketplace
these processes are not going to get any better.
(For more see: http://sites.google.com/site/economicsofmarket/)