The Financial Crisis - An Ideal Teaching Moment

Abstract

Does after the crisis mean before the crisis? Financial crises are part of the economic cycle and therefore not only absolutely normal but under certain circumstances beneficial. Is this also true for the ongoing financial crisis? It might be too soon to draw final conclusions, but financial crises show a great potential to encourage learning from the past and to foster socio-economic education. That’s not meant as a belittlement of the financial crisis, but should sharpen the mind to notice a primary dilemma of our economic system: Even though increasing credit facilities contributed to the economic prosperity during the last decades, the development of savings and debts should be in balance with the long-term productive capacity of society, economy and environment. The authors will review certain aspects and causes of the financial crisis under social und environmental constraints and will discuss possible long-term paths of development from an economic perspective. Following this, didactical implications will be considered and feasible learning content will be discussed.