I presume you have heard about the Euro-zone debt crisis, the disappointing and perhaps static progress of the American economy, or anything more or less related to the matter. No one denies the fact that these are manifestations of the financial crisis in 2008 (the story told one time too many: the irresponsibility of Wall Street and investors in subprime mortgage-backed securities). Time should not be spent on the relationship between the global financial crisis and its effects on the world economy as it is already apparent. However, further inquiry is required to understand some of the more implicit consequences of the global financial crisis, one of which I will be expanding on today.
Lesser known, but equally crucial, are the consequences of the financial crisis on education. Indeed, the United States has suffered tremendously from the mortgage crisis that started at its own front door. Albeit initial national policy to maintain the education sector during the beginning of the financial crisis, the balanced budget requirement has forced states to extensively cut back for the American educational system. As a Californian myself (and entering freshman at UC Berkeley this fall), I have been directly impacted by the rising costs of tuition and fees.
Even more intriguing is the phenomena occurring in developing countries. Although industrial nations were the arguably sole cause of the financial crisis, their interconnection with developing countries in terms of trade and foreign aid ultimately resulted in rising food prices and escalating poverty. Consequently, survival was prioritized over education. As citizens of developing countries struggled to put food on the table, there was no time or money to invest in education let alone appropriating funds for necessary textbooks or supplies (http://jatalo.com/mission/donationmodel). The rest is history: drop-out rates increased and improvements in education were put to a halt.
Today, sweaty palms and twiddling fingers describe the future of the global economy. Some fear the worst, an entire global financial collapse, while others believe there are signs toward recovery. Whatever the future may hold, our goal at Jatalo is to do our best to negate the effects of global crises like the current economic situation by working directly with schools and student. After all, we need educated thinkers to get us out of the mess that we put ourselves in.
Here’s a rather blunt infographic that underscores the enormity of the situation: http://demonocracy.info/infographics/usa/world_debt/world_debt.html
Derrick is signing out!