If we have finally learned, and that is a BIG IF, we might hope to see some rebalancing of our economic system which has become overly based on unbridled capitalism and pervasive globalization. As a consequence, we have extensive income inequality and we have become less and less self-sufficient as a country.
Tackling income inequality isn’t that difficult if we have the political will, and that scarce commodity might be more abundant now that we have (re)discovered that those who work in health care, in emergency services, and on the front lines in delivering goods and services are infinitely more essential to our survival than millionaires and billionaires.
Becoming more self-sufficient will be more challenging in some respects since widespread free trade has been the basis for much of our economic prosperity. But we now appreciate how vulnerable these arrangements have made us, how dependent we have become on other countries to provide for us. Particularly apparent is the risk we face in being so intertwined with the American economy as that country threatens to self-destruct, especially if the absolutely poisonous regime of Donald Trump should extend into a second term.
Granted, if we decide to bring production back home, to resume manufacturing products that we used to import more cheaply, our cost of living will increase. But if more people have manufacturing jobs, they can better afford to pay for the more expensive products. If the vast numbers of very poorly paid workers who have saved our lives and helped us survive in recent months are paid a decent wage, they can also afford to pay somewhat more for these products.
Recognizing the Vital Role of Government
Underlying this rebalancing will need to be a continued major role for our governments. For decades the mantra has been to reduce the size of government, to privatize services for greater efficiency, to hold the line on taxes, and to remove regulations so that business can compete and prosper. If we have learned from the current situation, we will remember that governments play a major role in moderating the excesses of unfettered capitalism and in shoring up the safety net when its gaps become glaring. We will understand that taxes are the price we pay for a civilized society not a loathsome burden to be avoided as much as possible. We will accept that it is essential to build in some redundancy in our systems, some excess capacity, so that they are better able to handle the crises that inevitably arise from time to time. We will reject the false savings inherent in maintaining bare bones operations that are overwhelmed when the unexpected happens.
For these changes to occur, there will need to be fundamental changes in our society and economy. Bringing about these changes will be a formidable challenge – but surely not more so than the kind of life and death challenges we are currently facing with the COVID-19 crisis. If we remember these very troubling times – and learn from them – we can perhaps build a better future for all of us.