A global nervous breakdown
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LOOKING around, it would seem that the world is in the grip of a massive nervous breakdown. Entire regions are convulsed by deep schisms that are threatening to tear society apart. From the Americas to Asia, polarisation is deepening and driving people apart.
The social contract between the ruling classes and the ruled appears to be breaking down.
Population increase is one of the factors driving these divisions: as poor nations become more and more dysfunctional and incapable of providing jobs to a swelling younger generation, the unemployed vote with their feet, and try and find illegal routes to a better life in more prosperous countries. Lawlessness and a collapse in governance are all contributing to this outflow. But rapidly, the doors for immigrants are shutting as social and political problems, especially in the West, are causing a fierce anti-immigrant backlash.
Germany is a prime example: Angela Merkel, the popular and effective Chancellor, is pilloried by an increasingly strident right-wing for her policy of allowing nearly a million refugees, mostly from Syria, to enter Germany a couple of years ago. The presence of so many foreigners has polarised German society as nothing has done for decades. After three terms, she has announced her decision to quit after the end of her present tenure.
Or take Britain, where the Brexit debate rages on. With departure from the EU less than five months away, the hard reality of the decision expressed through the 2016 referendum is starting to sink in. The government is making plans to charter ships to import food, medicine and other essential goods that have been normally arriving from EU countries. The whole idea of customs inspections at ports is giving the government nightmares. Plans are afoot to convert sections of some motorways near ports into huge car parks where trucks would await clearance. Thus far, they just drive through on to ferries without having to undergo any customs checks.
Apart from the commercial and bureaucratic hassles that loom ahead, the whole Brexit issue has divided families, and made friends turn against each other. Those who voted to remain blame Brexiters for pushing Britain to this uncertain and potentially ruinous position. Although more subdued of late, Brexiters are sticking to their guns, insisting that once the dust has settled, all will be well as Britain is once more a free-trading nation free to make deals across the globe. Dream on…
The migration issue has spread to the Americas, with a few thousand men, women and children from Honduras making their way on foot from their crime-wracked country to the United States. They have caught the attention of Donald Trump who has promised to deploy the army to prevent any migrants from crossing the border.
Across the world, this sad story is being repeated. Another factor causing fractures in society is the increasing income inequality that has risen to unprecedented levels. A tiny fraction of the obscenely rich now own a vast majority of global assets. The bottom half have virtually no savings or property. This unjust distribution of wealth is fuelling growing resentment against the rich that is feeding into political turmoil. This is what has given rise to the populist phenomenon that has handed the US presidency to Trump, as well as a host of other right-wing politicians who express the resentment of the have-nots.
Increasingly, governments are trying to increase taxes on the super-rich, but find that the Amazons and Microsofts of the bloated tech world have ways to circumvent normal tax rules. Their tax lawyers and their global reach allow them to shift their profits around in a way that is not open to ordinary mortals and businesses.
Then we have an increasingly volatile environment that is driven mainly by global warming. Scientists have warned of a rising sea level caused by melting ice at the poles. The number of hurricanes, floods and storms is going up as water availability falls. Even though Trump and his ignorant ilk refuse to acknowledge the obvious, and continue to deny any link between human activity and the environment, millions are already suffering the effects of climate change.
Faced with these convulsions, what should the super-rich do to escape the fallout? After all, their billions will do them little good if their mansions can be destroyed in a hurricane, or their fortunes reduced by political and social turmoil. Some have looked for places less prone to such violent change. New Zealand is one country that is peaceful, prosperous and stable. It also enjoys the advantage of being far away from most places. Some wealthy foreigners have begun buying property there as a hedge against destructive changes to their wealth and their lifestyle.
This increasing interest in property in New Zealand has caused a spike in land prices that has drawn sharp criticism from locals who are being priced out of the market. In response, the government has slapped new restrictions and taxes on foreigners buying land. I’m sure there are other island retreats that offer the same kind of security to the super-rich.
But for the poor, the only escape from the poverty and insecurity they live in lies in the developed world. Here, as we have seen, they are no longer welcome, and thousands die en route to the Promised Land every year. Their migration and tribulation provide the backdrop for a world that grows more miserable by the day.
Published in Dawn, November 5th, 2018
