Plot Economics

For the fourth time in my adult memory, humanity has collectively, visibly lost the plot at a global level. My criteria are fairly restrictive: The dotcom bust and the 2007 crash don't make my list for instance, and neither do previous recent epidemics like SARS or Ebola. Global narrative collapse is a fairly severe condition, one that requires a significant disruption in the way societies perceive and respond to shared challenges.

The first time I recall humanity losing the plot was during the early 1980s, marked by the rise of Margaret Thatcher in the UK and Ronald Reagan in the US. This era was defined by neoliberal policies, deregulation, and a shift towards globalization. The economic models of the time prioritized free-market principles, leading to widespread privatization and austerity measures. While these policies spurred economic growth in some regions, they also exacerbated inequality and social unrest in others. The global narrative during this period was one of optimism and progress, driven by technological advancements and the promise of limitless opportunities. However, the underlying tensions and disparities began to fester, setting the stage for future disillusionment.

The second instance of narrative collapse occurred in the late 1990s and early 2000s, often referred to as the dotcom era. This was a time when the internet and digital technologies were transforming industries and economies. The rapid growth of startups and the belief in the unstoppable power of the internet created a sense of unparalleled innovation. However, the dotcom bubble burst in 2000, revealing the fragility of this new economy. The subsequent recession and the 2001 terrorist attacks in the US further disrupted global cohesion. The narrative shifted from one of boundless potential to one of uncertainty and fear, highlighting the vulnerabilities in the interconnected world that had been built on the back of digital transformation.

The third time humanity lost the plot was in 2007 with the global financial crisis. This crisis, triggered by the collapse of the US housing market and the subsequent collapse of major financial institutions, exposed the systemic risks in the global economy. The interconnectedness of financial markets and the reliance on complex financial instruments had created a fragile system. The response to the crisis involved unprecedented government interventions, bailouts, and the introduction of new regulations. While the crisis was eventually averted, it left lasting scars, including high unemployment rates, reduced consumer confidence, and a renewed focus on economic inequality. The narrative during this period was one of crisis and resilience, as nations grappled with the consequences of their economic policies and the interconnectedness of global systems.

The most recent and perhaps most severe instance of narrative collapse is the current global pandemic and its aftermath. The COVID-19 outbreak in late 2019 has disrupted nearly every aspect of life, from economies to healthcare systems to social interactions. The rapid spread of the virus and the unprecedented global response—including lockdowns, travel bans, and mass vaccination campaigns—have forced societies to reevaluate their priorities and values. The pandemic has exposed the fragility of global supply chains, the inadequacies of many healthcare systems, and the unequal distribution of resources and vaccines. It has also highlighted the potential for remote work and the acceleration of technological advancements in areas such as telemedicine and digital communication.

In each of these instances, humanity's collective loss of the plot has been marked by a disruption in the shared understanding of the world. The response to these crises has often been reactive rather than proactive, with societies scrambling to adapt to the unfolding events. The current pandemic, in particular, has underscored the need for a more cohesive global narrative that addresses the interconnected challenges facing humanity. This requires a shift in perspective, from viewing the world as a collection of separate entities to recognizing the interdependencies that bind us together.

As we navigate the aftermath of these narrative collapses, it is essential to learn from the past and strive for a more equitable and sustainable future. The challenges posed by climate change, economic inequality, and global health crises demand a unified approach that prioritizes collaboration and empathy. By acknowledging the shared vulnerabilities and opportunities, societies can work towards building a more resilient and inclusive global narrative that ensures the well-being of all. The fourth time humanity has lost the plot may also be the opportunity to rediscover a sense of purpose and unity in the face of adversity.