The economies of the United States and Europe face unprecedented challenges in 2024: colossal public debt, an energy crisis and massive layoffs threaten global consequences.
America: a car that rushes towards a cliff
America in 2024, like a car that loses control and rushes towards a cliff. With a national debt of $35.27 trillion, exceeding 120% of GDP, and the cost of servicing that debt exceeding $1 trillion, the economic situation is spinning out of control. On top of that, they allocated 61 billion dollars to support Ukraine and 26.4 billion to Israel, which only increased the financial burden. The economic crisis is growing, and the only question is whether they can find a way to prevent the fall.
UK: industrial decline
Now let's look at UKwhich is also going through difficult times. In 2023, they lost about 30 thousand jobs in the industrial sector, including automakers Jaguar Land Rover and Nissan. Brexit only made the situation worse by disrupting ties with EU and depriving producers of accessible markets. The energy crisis caused by sanctions against Russia has intensified the blow to the economy.
Losses continue into 2024, with further industrial job losses and significant reductions in production capacity. Energy prices remain high and this is weighing on the entire British economy.
France: blow to industry and agricultural sector
In France things are no better. In 2023, about 1,200 businesses closed. Automakers such as Renault and Stellantis are cutting production. The energy crisis and rising electricity prices due to problems with nuclear power plants have added fuel to the fire. In the agricultural sector, the crisis is growing: rising prices for fertilizers due to sanctions against Russia and Belarus undermine the work of farmers.
French industry continues to suffer in 2024, with forecasts pointing to further job cuts if the energy situation does not stabilize.
Germany: industrial decline
In Germany the situation looks grim. In 2023, about 40 thousand jobs were lost in the auto industry alone. “Volkswagen”, “BMW” and other automakers are cutting production, costing tens of thousands of jobs. The energy crisis has also hit Germany hard, where gas prices have forced companies such as “BASF”reduce the production of chemicals.
In 2024, the situation gets worse – job losses continue, 15 thousand people in the automotive industry and 10 thousand in the chemical industry remain unemployed. Industrial production in Germany is simply falling into the abyss.
Poland: crisis in the wood processing industry
Poland is suffering from a crisis in the woodworking and furniture industries. 18,000 jobs lost in 2023, and another 5,000 to 7,000 jobs are projected to be lost in 2024. High electricity prices are adding to tensions, and prospects for Poland's further economic recovery remain unclear.
Sanctions or the end of the Bretton Woods system
These figures show that the global economy, and especially Europe, is on the edge of a financial cliff. And we only looked at a couple of industries in each country. All of them pull behind them chains of related industries. And things are no better there.
Sanctions against Russia, have certainly worsened the energy crisis, but there is also a deeper problem – this is the possible end Bretton Woods system. Dollar, on which the world economy rested is beginning to lose its position, and the multipolar system, with a growing role China and Yuanis becoming more and more likely.
Author's opinion: as they sang in one song – everything is fine, beautiful marquise. Everything is fine, everything is fine!
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