<html><head><meta http-equiv="Content-Type" content="text/html; charset=utf-8"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class="">Martin Wolf is a lead economics columnist for the Financial Times<div class=""><br class=""></div><div class=""><<<a href="https://www.ft.com/content/d5f05b5c-7db8-11ea-8fdb-7ec06edeef84?segmentId=62dcad5f-4bd9-3cc2-a1e0-b169738e74ee" class="">https://www.ft.com/content/d5f05b5c-7db8-11ea-8fdb-7ec06edeef84?segmentId=62dcad5f-4bd9-3cc2-a1e0-b169738e74ee</a>>></div><div class=""><br class=""></div><div class="">1st paragraph</div><div class=""><br class=""> In its latest World Economic Outlook, the IMF calls what is now happening, the “Great Lockdown”. I prefer the “Great Shutdown”: this phrase captures the reality that the global economy would be collapsing even if policymakers were not imposing lockdowns and might stay in collapse after lockdowns end. Yet, whatever we call it, this is clear: it is much the biggest crisis the world has confronted since the second world war and the biggest economic disaster since the Depression of the 1930s. The world has come into this moment with divisions among its great powers and incompetence at the highest levels of government of terrifying proportions. We will pass through this, but into what?</div><div class=""><br class=""></div><div class=""><div class=""><<<a href="https://www.ft.com/content/d5f05b5c-7db8-11ea-8fdb-7ec06edeef84?segmentId=62dcad5f-4bd9-3cc2-a1e0-b169738e74ee" class="">https://www.ft.com/content/d5f05b5c-7db8-11ea-8fdb-7ec06edeef84?segmentId=62dcad5f-4bd9-3cc2-a1e0-b169738e74ee</a>>></div></div><div class=""><br class=""></div><div class=""><br class=""></div><div class=""><br class=""></div><div class=""><div class="">
<div dir="auto" style="caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration: none; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div style="word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div style="color: rgb(0, 0, 0); font-family: Verdana; font-size: 14px; font-style: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px;"><div>—————————————————————————————————————--------------------------------</div><div>“Consumer expectations of ever-higher living standards were fuelled by more lenient and readily available bank lending …. </div><div>Social status and identity became closely associated with consumption, in particular with the concept of luxury. </div><div><br class=""></div><div>"Identifying oneself with the good life meant being able to live beyond traditional understandings of basic needs. Debt was the price </div><div>one paid for the joys of being part of a hedonistic consumer culture.”</div><div><br class="">Kenneth Dyson. The Morality of Debt. Foreign Affairs. May 3, 2015<br class=""><br class=""><a href="https://www.foreignaffairs.com/articles/2015-05-03/morality-debt" class="">https://www.foreignaffairs.com/articles/2015-05-03/morality-debt</a></div><div><br class=""></div><div><div>^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^</div><div>Despite recognizing the downsides of debt, the lure of spending remains strong. After covering off on necessities, Americans said 40% </div><div>of their monthly income goes toward discretionary spending on entertainment, leisure travel, hobbies, etc. In fact, when asked what </div><div>financial pitfalls they are prone to, one quarter of Americans flagged “excessive/frivolous” spending.<br class=""><br class=""><div class=""><a href="https://www.northwesternmutual.com/about-us/studies/planning-and-progress-study-2017" class="">https://www.northwesternmutual.com/about-us/studies/planning-and-progress-study-2017</a><br class=""></div><div class=""><br class=""></div><div class=""><br class=""></div></div></div></div><div style="color: rgb(0, 0, 0); font-family: Verdana; font-size: 14px; font-style: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px;"> </div></div></div>
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