An Explanation of the Great Reset

The Great Reset plan was introduced at the World Economic Forum’s (WEF) 50th annual meeting in June 2020. Amidst the coronavirus pandemic, with so many struggling both economically as well as in regards to their physical and mental health, the plan sets to restructure capitalist systems across the globe into a more socialistic form of capitalism with the hope of bringing social and climate justice to all.

The leaders at the World Economic Forum argue the pandemic has exacerbated social tensions and climate challenges across the globe. In an article written by the WEF’s founder, Klaus Schwab, he notes how the crisis has already resulted in the rollback of several countries environmental protections as well as the frustration many people have felt, as the net worth of billionaires rose dramatically throughout the pandemic while the rest of the population struggled or even lost their jobs.

“Left unaddressed, these crises, together with COVID-19, will deepen and leave the world even less sustainable, less equal, and more fragile,” wrote Schwab.

Schwab sees the pandemic as evidence that collaboration amongst each other as well as between businesses, governments, and universities is possible. In a matter of just a few months, everyday people adjusted to a new lifestyle of social-distancing, masks and limited gatherings. It was difficult, but it was done by many. To develop a vaccine, governments, universities and corporations worked together to bring one to market as quickly as possible. Faced with extraordinary circumstances, humanity rose to the occasion.

The plan is structured in three parts – each requiring a level of collaboration between countries never before seen. As Klaus put it, “Every country, from the United States to China, must participate, and every industry, from oil and gas to tech, must be transformed”.

First on the Great Reset’s agenda is governments making economic reforms that promote, as Klaus says, “equitable outcomes”. These measures are similar to those pushed by prominent leftist politicians in the United States such as Representative Alexandria Ocasio Cortez and Senator Bernie Sanders. Higher rates of tax on the rich, more regulation on corporations, and changes to fiscal policy are all cornerstones of the first component of the plan.

While the actions by each government would be dependent on the country themselves (and the policies they may or may not already have in place) the goal would remain the same – create a “stakeholder economy”, making everyone feel they are part of the financial system, not just an individual stuck within it. For example, suspending subsidies for oil and gas corporations would cause them to reevaluate their business model, transform their company into something new, and ultimately result in a cleaner environment from which everyone can benefit.

Second within the Great Reset plan, is for governments to make large investments in creating a new system founded on green infrastructure and financial incentives for industries to better themselves socially and environmentally.

With governments across the globe already investing trillions of dollars into economic stimulus, hoping to rebuild their economies and ensure the continued success of large corporations, Schwab sees this moment as an opportunity to begin implementation of this portion of the Great Reset.

“Rather than using these funds, as well as investments from private entities and pension funds, to fill cracks in the old system, we should use them to create a new one that is more resilient, equitable, and sustainable in the long run.”, wrote Schwab.

The last aspect of the Great Reset is to utilize the innovations of our modern day industrial revolution to benefit the public good. This is where the collaboration across industries, governments, and educational institutions come into play. If these groups can work together as they did during the pandemic – there is potential for a more equitable and just economy for people across the globe.

Ultimately, the Great Reset is for the moment a proposal – not a solidified plan that has been agreed upon by governments worldwide. Time will tell if the plan ever comes to fruition in its entirety, but for Klaus Schwab this moment is the time for action. “The pandemic represents a rare but narrow window of opportunity to reflect, reimagine, and reset our world”, he wrote in his article.

The clock is ticking and time may be running out. With vaccines being distributed worldwide and global efforts to curb the pandemic at full speed, it appears the world will know sooner than later whether this opportunity is seized.