Jackson Hole Economics

Reasons to Give Thanks

Recent years have been marked by profound shocks. The rise of populism and a crisis of democracy in much of the western world, a pandemic that killed millions and revealed the fragility of our social fabric, an accelerating and existential climate crisis, disastrous and murderous wars in Europe and the Middle East, a new cold war between the US and China—these are but a few reasons to despair. 

Conventional wisdom has declared that we live in the most dangerous time since the late 1930’s. This may be true. But it is also true that every generation identifies its threats as uniquely treacherous. After all, evolution has encouraged humans to experience the world as revolving around us. And in periods of stress, we are particularly prone to tunnel vision, typically losing context as a result.

So, in the interest of putting events into perspective, we have sought to delineate five truly devastating periods in humanity’s history, some caused by nature and some by man. In recalling previous dark times we gain perspective about the challenges we face today, and—even more important—about our collective capacity to overcome them. 

My, what a downer. But what does this summary of disasters have to do with today’s troubles? 

First, as difficult as our current challenges appear, we can learn much from history about the human capacity to endure, innovate, and overcome. 

Today, in many ways we are we are responding effectively to the crises of our time. Science stopped the pandemic in its tracks, demonstrating the paradigm-shifting advances of mRNA vaccines. Democracy, under threat in the United States, has (thus far) held up. Russia’s naked and murderous aggression in Ukraine has been met by a largely unified response from an expanded NATO. Putin’s military has been significantly degraded, revealing a power far short of super. 

Second, humanity is resilient. 

Time and again, nature and man have sought to wipe us out. Yet we have bounced back. Out of the devastation of World War II, the West, including vanquished Germany, Italy and Japan, coalesced around a series of multi-lateral institutions – the UN, World Bank, IMF, the European Union, and the WTO—to deliver global economic and political cooperation among nation states never before seen in human history. Even among adversaries such as the US and the Soviet Union, significant progress was made to reduce the risk of nuclear Armageddon, an accomplishment largely forgotten because history does not record the absence of events.

Third, humanity finds a way to come back. 

That’s even true regarding its greatest challenge, slowing climate change. The rapid uptake of renewable energy sources and hopes for even more significant breakthroughs, such as fusion energy,  point to our ability to adapt. Advances in AI technology herald new strategies to tackle climate challenges. And last week, the Biden-Xi meeting produced a rare pledge to renew climate cooperation and pursue efforts to triple renewable energy capacity by 2030 globally. 

Fourth, human progress is not linear. 

Often our better angels are only revealed in response to tragedy, calamity, and threat. The images of wanton violence against innocent civilians cause us to recoil, but they also enable us to regroup. We cannot know whether the tragedies on and since October 7 will lead to the search for enduring solutions to the Israeli-Palestinian conflict, but already they are driving greater focus on the dynamics at play and a desire to move beyond the status quo ante

We never welcome human tragedy, but when it inevitably arises, we often find the courage to think and act in ways that previously eluded us. More than a thousand years of civil war in Europe found its resolution in the ashes of 1945.  Few might have believed then that what would subsequently arise would be peace, harmony, and unprecedented cooperation spanning three generations of Europeans. 

Later this week, US families join in giving thanks. Many will return to loved ones with heavy hearts, burdened by the unending news of suffering and threats. But upon reflection, many of us will be thankful for our collective spirit, resolve, and ingenuity to meet and overcome challenges. 

Ours is not a uniquely troubled world. Only the specifics are new or different. The common thread of our being is that within us resides the capacity to overcome. Humanity has not lost its ability to bend arcs in the directions of justice, freedom, civility, sustainability, and peace. We only require the will to do so.