World economy set for another major downturn

  • Despite the trillions of dollars handed out to the banks and financial institutions over the past three years by governments around the world, nothing has been resolved.

  • Who Will Fix the Economy?

Nick Beams, World Socialist Website

Submitted by David Culver

The World Bank has issued a grim forecast on the outlook for the world economy, with the potential for a crisis worse than that which followed the collapse of Lehman Brothers in September 2008. The warning was contained in the Bank’s Global Economic Prospects report, issued yesterday (Jan 24).

These predictions were backed by a United Nations report. It said the world economy was “teetering on the brink of another major downturn,” with output growth slowing “considerably” in 2011 and only “anaemic growth” expected in 2012 and 2013.



Who Will Fix the Economy? Henry Mintzberg, Nation of Change
On the ground, there are two kinds of enterprises: those that rely on exploration, and those that rely on exploitation. Every economy has both, but a healthy one favors the explorers. This fosters the sense of enterprise that made the United States such an economic powerhouse.
Confronting the Wealth Divide is the Key to Fixing the World Economy
Remaking America: From Poverty to Prosperity


  1. Not sure whether downturn will really take place, but on account of Euro Crisis & Oil Market imbalance, economies are going to suffer a set back! In fact countries not trying to grow but rather just protect themselves. This has blocked the true vision that a country should have.


    1. How can another downturn NOT take place? Relying on austerity, the only strategy I see so far being used to cure economic ills, is absurd.

      Robert Reich | The Austerity Death Trap, Robert Reich, Huffington Post
      Unless the GOP agrees to a budget deal before year’s end, the payroll tax cuts and extended unemployment benefits we have now will end. The scale of this fiscal contraction would be almost unprecedented.
      The only way out of this vicious cycle is for the government — the spender of last resort — to boost the economy. The regressives are all calling for the opposite.
      Misguided deficit worries make unemployment worse
      Tax the super-rich or riots will rage in 2012

      Paul Krugman | The Austerity Debacle, Paul Krugman, New York Times
      The austerity doctrine that has dominated elite policy discussion both in Europe and, to a large extent, in the United States for the past two years is a stunning failure of policy.
      Paul Krugman | Nobody Understands Debt
      World economy set for another major downturn


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