Gabriel’s Tsunami

An analysis of the economic crisis

by Gabriel Timar

Part 1: Where and when was the crisis born?

section 2 of 2

The technology factor

Let’s face it; technology is evolving too fast to permit any kind of balance in the workplace or in social circles. Certain gadgets — pokemons, computer games etc. — are a must. These wants costs millions. However, since they are mostly manufactured outside the U.S., they became a drain on the economy just like foreign oil.

In the distant past, improvements in manufacturing, building and transportation came about because of necessity. For example: to get from A to B faster and to move more materials, the concept of the railway was discovered. Granted, such things had military applications, but initially they were used for peaceful purposes. Technology kept pace with the evolution of society.

The Second World War, and ultimately the Cold War demanded lightning-fast development of military technology. Peaceful applications were not important, and tremendous resources were concentrated on the invention and construction of more efficient killing machines.

The impact was twofold. Governments invested huge sums of tax money into hardware that — thank God — was never used; and they developed the expertise of invention. When the arms race slowed, technocrats found their way into civilian industry and began applying their talents to creating desirable gadgets, which the Madison Avenue indoctrinated society snapped up.

Computer technology grew by leaps and bounds. The brains at the top figured that the machine could replace people: computers would not go on strike or take maternity leave. The wily but shortsighted tsunami-riding CEO’s thought they would save money by using computers, and fired many people.

However, the computer is only a willing, hard-working, but very stupid assistant whom the operator must tell precisely what to do. A special breed of people was needed to communicate with the machines. Eventually, the trimmed-down workforce began to swell; high-priced programmers and communication technicians appeared everywhere.

Almost half a century ago, I needed a copy of the paper I got in Quebec City when I first landed in Canada. I wrote to Ottawa. Lo and behold, within a week, I got it by mail. A similar request today, — when all government records are on computer — takes several months.

In 1962, I handed in my application for citizenship on the fifth anniversary of my landing, took the citizenship exam within a week, followed by the oath of allegiance. Nowadays, it takes a year from submitting the application to get a reply from Ottawa. Such deterioration in service quality makes one question the wisdom of computerization.

The sophistication of electronics and communication gadgets is increasing rapidly. They can tell you where you are, let you read your e-mail, watch TV, play music, take photographs and make videos; but they make it most difficult for a guy with thick fingers and a little bit of visual impairment to use the damned thing for what it was intended for: making a phone call.

The following story demonstrates the typical waste-generating practices of the software companies. While I ran the Civil Engineering Department in Canada’s number one Community College, I fought a running battle with a software company. They had developed an excellent, practical program, an outstanding teaching tool with industrial applications second to none.

However, after a year, they came up with version two. In addition to being much worse than the original, it was not compatible with the old program and its appendages. We changed, because the old version was not available any more.

By the time we ironed out the wrinkles, and the new version worked almost as well as the original, lo and behold version three made its debut. The debacle started again.

Two years later, taking the bull by the horns, I refused to buy version eleven for our twenty-odd computers and kept teaching with version ten. It was no different from the later programs except the manufacturer had added a few bells and whistles — something engineers never used.

To make sure our students would be up to date, I had one computer with the latest version, letting the kids familiarize themselves with the state of the art version. Most learned it within an hour. Admittedly, our kids were clever, but the programs hardly differed.

Cyber criminals entered the business world, endangering everything that has anything to do with computers. According to one of my friends, some banks in Liechtenstein have reverted to keeping their books on paper.

One could go on raving and ranting about the evils of the technical evolution speeding up everything — including the deepening of the crisis — but I will not go into it.

The political factor

If one looks at the history of the world, it becomes apparent that the cause of each war was a matter of economics. In the 20th century, all wars were fought over markets or influence. The winners took territories from the losers, expanding the market for their goods.

Despite having the world’s best-trained, best-equipped, and most expensive army, the USA has somehow managed to lose all wars since 1945. Therefore, the market for American goods has shrunk. This could be one of the long-simmering reasons for the crisis.

The terrorists’ entry onto the world stage complicates matters. In the beginning, nobody foresaw that the financial burden of security would bring America and the rest of the industrialized world almost to their knees. Allegedly, security costs more than many armies do.

When the radio announced the first hijacking of an aircraft to Cuba, I sat with my father in his study. The old man, a long-retired airline pilot shuddered hearing the news. He quietly remarked: “That pilot had neither brains nor guts.”

“Why?” I asked indignantly.

“Look, aerial piracy will have far reaching consequences. We must stop it now. Every bum desiring publicity and a few dollars will hijack a plane to Cuba. Eventually, we’ll see politically motivated aerial piracy.”

“I believe you,” I said, “but what could the pilot have done?”

“If I were the captain of the plane, I would have sent the copilot to tell the passengers about our diversion to Cuba, leaving the hijacker alone with me in the cockpit.

“Next, I would have chopped the throttles, pushed the yoke slightly forward, and told the pirate not to mess around: either shoot or hand over the gun. I bet he’d have given me the weapon.”

“So, you would have stopped the guy from taking charge of your plane. Big deal! How about the next hijacker?” I interrupted.

“My next move should have discouraged the others. Upon landing, I would have sent the passengers off the plane, shot the hijacker in both knees and in the guts and let him bleed to death in the passenger cabin.”

“You’d have ended up in jail, Dad. They might even have had you hanged.”

“I would have had an unassailable defense. Every civilized government has permitted its navy captains to hang captured pirates on the spot. That should apply to an airliner.”

I assume my father was right, as always.

As hijacking had no consequences, the terrorist were emboldened and decided to try it for their own purposes. Much later, when they realized that Americans were pussycats when it came to terrorists, they attacked the World Trade Center.

The tsunami-rider president decided to strike out at someone, and quickly shot himself in the foot. His targets were completely wrong. When he learned the identity of the dead terrorists, he should have handed the bill for the damages to the Saudi King, reminding him that his subjects perpetrated the outrage, and His Majesty’s Government was responsible for the damage.

As an alternative, the president should have offered to destroy the most expensive structure in their country as long as it cost approximately 3,000 deaths. This would be have been in strict accordance with Sharia law.

We all know what happened instead: the costly, losing wars in Iraq and Afghanistan. The economy started going downhill and Joe Citizen became restless. To placate him, the government loosened the rules governing mortgages and credit.

Proceed to Part 2…