The world have been in chaos for a couple of decades now. It started barely 20 years after the end of World War I. It wasn’t just physical war but there was the Great Depression before that, the runaway inflation in some parts of the world, and the seeds of communism growing. And then even when WWII ended, we had a series of proxy wars during the Cold War period.
But nevertheless, problems starting being solved, people who were fatigued from the world wars, the tragic deaths realised it was important to unite in the right ways. The blueprint for a new world order became laid down in the centers of gravity of the world.
It was hard work but nevertheless, it was about getting on the right trajectory, the right bandwagon, and we’ll see double digits growth in things. Maintaining peace and stability gives rise to natural growth as investment in the longer term rose. Interest rates started falling without as much consequence on inflation, private investment into longer term assets soared, helped by the socialisation of longer term government borrowings, helped by imaginary sense of control investors have through the establishment of sovereign risk rating systems.
Incentives everywhere were getting more aligned towards pumping up GDP numbers, increasing political rhetoric about competition, and investing into the right places. The military-industrial complex took hold because it made sense to industrialise everything and create more wealth; though they were mostly distributed to the industrialists.
These are the conditions of the world that gave the world the Great Moderation, unprecedented growth and lifting of people our of poverty. It has also given us a growing climate change problem, a global economy that was resilient in some ways but more fragile in others.
We all have a choice whether to perpetuate these. Whether to make history, your story.