The Great Depression, global conflicts, COVID-19. Nobody would want to live through these crises of the past again; the death tolls and economic costs can be counted but the true cost of human suffering is immeasurable. And yet, they all produced invaluable lessons, innovations and social improvements that we benefit from today. There are silver linings that have improved our lives and made us wealthier.
War’s Impact on Technological Advancements
War, despite its devastating consequences, has driven technological progress out of sheer necessity. Necessity, as the saying goes, is the mother of invention. The aviation industry witnessed leaps in technology during the Second World War, resulting in the development of jet engines and radar systems which created the boom for commercial flight and tourism on a global scale.
Similarly, the healthcare practices we enjoy today can be traced back to the urgent need for innovation on the front lines. The modern use of ligatures in surgery was first used in the 16th Century to replace the unimaginably painful practice of cauterising wounds; prosthetics were first given to soldiers who lost limbs in the American Civil War; blood transfusions and the discovery of penicillin and antibiotics were World War 2 discoveries.
Furthermore, the rapid and generation-defining growth of AI technologies that we are witnessing first-hand (and has been used in the writing of this article) can be traced back to the pioneering work of Alan Turing and his team in creating the Enigma code-breaking machine at Bletchley Park during World War 2.
Resilience Unveiled Amidst the Pandemic
The COVID pandemic, while presenting unprecedented challenges, catalyzed innovation and adaptation. Led by Britain’s scientists, the rapid development of multiple COVID-19 vaccines exemplified the worldwide scientific community’s ability to collaborate, leading to remarkable achievements in a very short period. Beyond addressing the immediate threat, these efforts have created more efficient and flexible public health systems and shown the benefit of working collaboratively, across borders rather than in individual silos.
The need for remote working forced the transition to digital platforms and virtual collaboration tools which not only allowed companies to continue to operate and protect millions of jobs, it also reshaped the traditional work landscape. Despite the increasing requirement for employees to return to office-based work, the opportunity and ability to work remotely have changed the nature of work forever and embedded efficiencies into the working practices of companies large and small.
Lessons From Aviation and Healthcare Failures
Crises shed light on systemic weaknesses, often at the cost of lives, prompting significant improvements. Instances like plane crashes and medical mishaps, tragic as they are, have led to strides in enhancing safety and precision.
In the aviation sector, disasters prompted rigorous investigations and the implementation of stringent safety measures. Innovations such as black box technology, enhanced pilot training, and advanced communication systems emerged as a direct response to tragic incidents, contributing to the high safety standards of air travel today.
Similarly, setbacks in healthcare have driven improvements in patient safety and medical procedures. Medical errors have spurred the development of standardized protocols, enhanced training for healthcare professionals, and the integration of technology for safer and more accurate treatments.
Innovations Rising from the Depths of Depression
The Great Depression of the 1930s caused economic hardship throughout the US with the effects being felt worldwide, but it also led to positive changes that we benefit from today. The need for efficiency and cost-effectiveness drove technological advancements in manufacturing; mass production techniques, pioneered by Henry Ford, not only revived the automotive industry but also laid the foundation for industrial practices that continue to influence manufacturing.
The Depression also led to improved social welfare programmes. Franklin D Roosevelt’s New Deal program drove economic progress by creating millions of jobs, provided Social Security for the elderly and unemployed and deposit protection insurance restored confidence in the banking system. This and other legislative changes introduced because of the Depression provided the solid foundation for the US to become the global powerhouse it is today and create the positive (and negative) effects it has had across the world ever since.
What It Means For Your Money
Innovations sparked by these crises have benefits at a societal and welfare level. They also have benefitted us financially through reduced costs and greater choice enabled by mass production techniques and the creation of global transportation and communication networks. These improvements have also increased our wealth through job creation, provided financial protections and fueled the indomitable rise of capitalism. The long-term value of our pension and investment funds has increased because of the ever-upward trend of the capital markets, which provide us with financial freedoms that previous generations did not enjoy.
Wildfires: Clearing the Path for the Next Generation
Just as wildfires clear out dead wood spurring new growth, crises force change and foster the way for new practices, procedures and products. The suffering endured by those caught in crises at a national and global level is, at least, not in vain; the lessons from the suffering act as catalysts for progress.
Sources used in writing this article:
https://www.bbc.com/news/health-15771688
www.statnews.com/2017/11/10/medical-innovations-war/
https://www.thebalancemoney.com/effects-of-the-great-depression-4049299
news.stanford.edu/2020/04/29/great-depression-demonstrated-indispensable-role-government/
