• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that

2

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

3

Current price of oil as of May 15, 2026

1

Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that

2

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

3

Current price of oil as of May 15, 2026
FinanceTerm Sheet

A world in chaos? That may be a good thing.

Geoff Colvin
By
Geoff Colvin
Geoff Colvin
Senior Editor-at-Large
Down Arrow Button Icon
Geoff Colvin
By
Geoff Colvin
Geoff Colvin
Senior Editor-at-Large
Down Arrow Button Icon
January 23, 2012, 10:00 AM ET

Outrage is the word for 2012. Hopefully there’s enough out there to solve some giant problems that have been festering for far too long.



Too much is happening in the world. Politically, economically, and culturally momentous news is occurring on every continent seemingly every day, and it’s overwhelming for the hapless citizen striving to stay on top of it all. If you want to impose order on the chaos, at least in your own mind, here’s a suggestion: Just remember a, b, c, d. Four large, interrelated forces are driving the action globally, and they conveniently begin with those letters.

A is for anger. The whole world seems to be erupting in popular rage. In the U.S. the Occupiers are planning their spring comeback. Europeans from north to south are marching in the streets against austerity. Egyptians, Syrians, and Yemenis are dying as they rage against their rulers. The Wukan uprising is reshaping China’s political landscape. Protests by tens of thousands of furious Russians have shaken Putin like nothing before in his long reign.

Each case is unique, yet a couple of factors underlie them. In the developing world, it’s corruption. Authorities are violating the people’s will to enrich themselves, stealing money or, in a bogus democracy like Russia, stealing votes. In the U.S. and Europe it isn’t corruption but in large part the b factor.

B is for borrowing. Today’s anger in the West is fundamentally economic, and while our economic problems may seem infinitely complex, they can be summarized in three words of one syllable: too much debt. America’s federal government, state governments, financial corporations, and households all carry unsustainable debt. As they all try to deleverage simultaneously, our economy goes nowhere month after month, and citizens lash out. Southern Europeans simply cannot believe that their government-debt-fueled lifestyles were actually a Ponzi scheme that has finally reached its inevitable end; in Britain and Ireland, private debt is also impossibly high. Confronting the reality of too much debt is slow and excruciating. No wonder people are mad.

Why so much debt in the developed world? Consider the letter c.

C is for competitiveness. In the West, middle-class living standards stopped rising several years ago. After 200 years of fairly steady increases, that’s an epochal change. Rather than accept it, many people borrowed money to pretend their living standards were still improving. A retail clerk recently told me she had $8 in the bank and wouldn’t get paid for two weeks, but she had 18 credit cards and was paying off her last vacation, a $4,000 cruise.

A major element of the problem is the advent of a global labor market. Millions of workers now compete with one another, and in this market Westerners are the high-cost option. Many are no longer worth what they cost. They aren’t competitive. Thus, wages roar upward in China and India while stagnating in the U.S. and in Europe.

To solve all these problems, people look to government. What they see is the letter d.

D is for deadlock. Like anger, another remarkably global phenomenon is paralysis at the top of governments. The euro crisis threatens financial Armageddon, yet European leaders can barely manage baby steps to contain it. America’s Congress and President had to see their toes hanging over the brink of disaster before raising the debt limit; the Super Committee stayed deadlocked to the end. That’s the way it is with the hardest problems: Solving them is so painful that it doesn’t get done until the last, most desperate moment. Dithering by leaders makes ordinary citizens furious, of course, which takes us back to the letter a.

The a-b-c-d framework doesn’t sound optimistic, but hope is in there if you look hard enough. All those trends are about solving giant problems that have needed fixing for decades, from repression in the developing world to debt mania in the West. They could have been addressed long ago but weren’t because it was too painful. Now, at last, the pain has become unavoidable. That means these mega-challenges are much closer to finally getting resolved.

Meanwhile, during the lengthy pain phase of the process, the a-b-c-d framework can at least help us order a chaotic world.

This article is from the February 6, 2012 issue of Fortune.

About the Author
Geoff Colvin
By Geoff ColvinSenior Editor-at-Large
LinkedIn iconTwitter icon

Geoff Colvin is a senior editor-at-large at Fortune, covering leadership, globalization, wealth creation, the infotech revolution, and related issues.

See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

lirr
EconomyRailroads
Spring Hamptons traffic nightmare as Long Island Rail Road workers go on strike
By Philip Marcelo, Nick Lichtenberg and The Associated PressMay 16, 2026
2 hours ago
delivery
Retailecommerce
Walmart’s upper hand over Amazon in the $1 trillion e-commerce race: 90% of Americans live within 10 miles of a superstore
By Anne D'Innocenzio and The Associated PressMay 16, 2026
2 hours ago
milei
North AmericaInflation
Argentinians wage inflation strike on red meat sending beef consumption to 20-year low
By Clara Preve and The Associated PressMay 16, 2026
2 hours ago
tom
SuccessEntrepreneurs
Top Chef’s Tom Colicchio got a 15x return on a tech company most Americans have never heard of. He thinks his own industry is broken
By Nick LichtenbergMay 16, 2026
4 hours ago
bhaskar
Economydisruption
The prophet of the ‘Wired Belt’ says capitalism is finally eating itself
By Bhaskar ChakravortiMay 16, 2026
5 hours ago
cyborg
Future of WorkProductivity
AI’s cyborg problem: you have to embrace it to really succeed but 90% of people can’t or don’t want to
By Nick LichtenbergMay 16, 2026
6 hours ago

Most Popular

Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that
Success
Despite having a $165 million net worth, Scarlett Johansson says work-life balance doesn’t exist—and the first step to success is admitting that
By Preston ForeMay 13, 2026
3 days ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
4 days ago
Current price of oil as of May 15, 2026
Personal Finance
Current price of oil as of May 15, 2026
By Joseph HostetlerMay 15, 2026
1 day ago
Nearly 50,000 Lake Tahoe residents have to find a new power source after their energy source looks to redirect lines to data centers
Travel & Leisure
Nearly 50,000 Lake Tahoe residents have to find a new power source after their energy source looks to redirect lines to data centers
By Catherina GioinoMay 12, 2026
4 days ago
The airplane fuel shortage is a myth propagated by airlines who want to cancel unprofitable flights, says private jet CEO
Energy
The airplane fuel shortage is a myth propagated by airlines who want to cancel unprofitable flights, says private jet CEO
By Jim EdwardsMay 14, 2026
2 days ago
Debbie Gibson, Geezer Butler of Black Sabbath want you to adopt a beagle rescued from an experimental lab in Wisconsin
North America
Debbie Gibson, Geezer Butler of Black Sabbath want you to adopt a beagle rescued from an experimental lab in Wisconsin
By Scott Bauer and The Associated PressMay 13, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.