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"Hurt, Frightened and Very Angry:" Risk of Social Unrest Rising, Says FT's Martin Wolf

Posted Apr 01, 2009 03:17pm EDT by Aaron Task in Newsmakers, Recession
Protesters in the streets of London at today's G20 meeting and the silent, irate majority elsewhere have every reason to be "hurt, frightened and very angry," says Martin Wolf, chief economics commentator for The Financial Times.

While "nobody knows what's going to happen," Wolf notes recent forecasts from various international organizations are "pretty scary," including:

  • The World Bank expects the global economy to contract by 1.7% in 2009, and global trade to decline by 6.1%.
  • The OECD forecasts economic activity in the 30 industrialized nations it follows will shrink by 4.3% this year with trade among those nations down more than 12%.
  • Unemployment in the developed world is expected to rise another 25 million people by 2010, according to the OECD.

"It's a real collapse," Wolf says. Declines of that magnitude "haven't happened since the 1930s."

As a result, "people in the developed world suddenly feel completely out of control for first time in 70-80 years," he continues. "Huge forces are now unleashed."

These forces include the kind of social unrest evident in London and more recently in emerging economies; similar disturbances are very possible in America too, he says.

But Wolf doesn't expect a repeat of the 1930s, in terms of economic or geopolitical turmoil, noting social safety nets in the developed world and a general sense of cooperation among most nations to combat the crisis.

If nothing else, that's a bit of hopeful news amid an otherwise grim backdrop.

189 Comments

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 01, 2009 03:27PM EDT

Long IOU... short USA

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 01, 2009 03:28PM EDT

It's a good thing that the economy is BOOOOOOOOOOming!!! This world is one BIG F#@$ing LIE..........

Free Texas 2012
Free Texas 2012 - Wednesday April 01, 2009 03:30PM EDT

Of course there will be social problems. The have nots always want what the haves have, but especially when the have nots have even less. This is a real potential problem for the U.S. Will the United States hold together or are we headed for a dissolution? That would definitely be CHANGE. Be careful what you wish for because you just might get it.

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 01, 2009 03:33PM EDT

Fear cannot be banished, but it can be calm and without panic; and it can be mitigated by reason and calculation-----George Bush

__A_YAHOO_USER__
__A_YAHOO_USER__ - Wednesday April 01, 2009 03:34PM EDT

American mobs get a lot more respect because they have Night Vision and rifles, not torches and pitchforks. European protesters are just a bunch of soccer hooligans who show up for free alcohol.

EL ESPOSODOR
EL ESPOSODOR - Wednesday April 01, 2009 03:34PM EDT

I protest this Euro Idiot! What a mouthful. Saying the U.S. should appologize is a joke. Yes we might have led the world into this economic mess but everyone needs to take the responsibility for the part they played in it. The Euro's love it when they are all making money but run to blame the U.S. at the first sign of adversity. Don't worry as alwasy we will save the world again. It's a thankless job that unfortunetlay we always fill. The Euros shoudl be thankful that the continent wasn't taken over by Communist Russia or better yet Nazi Germany. Your welcome for nothing so keep crying!

binderzz
binderzz - Wednesday April 01, 2009 03:35PM EDT

No need to worry, Wall Streeters. Even as the world slips into social unrest and turmoil, you can always retire to that quiet Pacific island you purchased with your ... stolen loot.

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 01, 2009 03:37PM EDT

Don't you two EVER have anything positive to report??

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 01, 2009 03:39PM EDT

I can't believe that Scotttrade sponsors all your negative reporting.

JazzMan
JazzMan - Wednesday April 01, 2009 03:40PM EDT

So 1,000 wacko environmentalists is representative of massive worldwide social unrest? Yes, let's definitely base social and economic policy off of every protest that gathers that number of people. Personally, I find the dart board to be a better gauge. "People ... (are) out of control. Huge forces have been unleashed." Where did they get this guy? Sounds like a frustrated sci-fi writer.

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 01, 2009 03:41PM EDT

Invest in guns and ammo. Social unrest is an understatement.

Donald
Donald - Wednesday April 01, 2009 03:44PM EDT

Now we know the true identity of Chicken Little. It is Martin Wolf. Watch Our! Watch Out! The Sky is Falling!!!

Terry
Terry - Wednesday April 01, 2009 03:47PM EDT

Well Billy Bob. The majority of the Have-nots used to be the Haves, and it is obvious to them that the Haves-more took it away from them. Blood in the street to the nth degree, in many US Cities, coming to a City near you this Summer. Don't miss it!

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 01, 2009 03:47PM EDT

I am angwy and fwightened.. pwease hep me...

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 01, 2009 03:47PM EDT

Social unrest will be fun. I better get out and practice shooting. I'll put up cardboard cutouts of fat, overpaid, useless CEOs to practice on.

choosh
choosh - Wednesday April 01, 2009 03:49PM EDT

According to Abraham Lincoln in his first inaugural address, the people have the absolute right to revolution. A fundamental reason for the Revolutionary War was taxation without representation. With 25,000 highly paid lobbyists dominating the attentions and finances of 535 congressment the bulk of the people have been priced out of their representation. I suggest campaign financing reform of a radical nature and that it not be left to the self-interested parties to determine. Too much governance is left to self-interested parties, its like the principles of checks and balances has been unlearned in the US.

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 01, 2009 03:49PM EDT

Go ahead and shake your finger at the angry mob. Scold them about their laziness as they burn your house to the ground. And as they’re stringing you up by your heels, you can shout at them that they’re all just jealous…..

Reedersong
Reedersong - Wednesday April 01, 2009 03:50PM EDT

I wish they would "UNREST" oil down to about $37.

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 01, 2009 03:50PM EDT

"In God ,we trust" ---- Who can say to God? God is not a person whom we are going to meet some day....

donfurio
donfurio - Wednesday April 01, 2009 03:51PM EDT

Get these socialists out of the media, it's a big part of the problem..

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