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#politicaleconomy

6 posts5 participants2 posts today

"Clearly, something is sabotaging society’s rational development. We should have those trains, and some big solar-powered apartment buildings near the stations. Even if I think the solutions are probably closer to agroecology than indoor vertical farming and giant sailboats than green jetliners, that doesn’t stop me from agreeing with the Abundance authors that there’s a block. But where Klein and Thompson blame self-seeking “groups” who—according to the work of economist Mancur Olson—are a constant and unavoidable threat to human collective action, Marxists understand capitalist production as riven by particular ironies and contradictions.

For example: capital is reluctant to enter industries that are easy to enter, for fear competition will drive out the profit. The abundant solution to a lack of housing is to make it easier for developers to build for increased density: the more units that come onto the market, the less landlords will be able to charge. But the same supply mechanism that pushes down prices discourages capital from the sector."

thebaffler.com/latest/whats-th

The Baffler · What’s the Matter with Abundance? | Malcolm Harris“Abundance” by Ezra Klein and Derek Thompson is new packaging for a tried-and-failed attempt to escape from history on a rocket ship.

"By setting up a crypto reserve containing dollar-backed stablecoins, the US authorities are signalling to foreign dollar holders that the US government endorses their ownership of these cryptocurrencies. During upcoming negotiations with various governments, with tariffs dangling like the sword of Damocles above their head, the President will drop subtle hints about how pleased he will be if foreign investors buy these stablecoins using their own dollars. If they do buy them, the dollar supply will increase, the dollar exchange rate will dip, no other fiat currency will emerge as a potential suitor to the dollar’s reserve currency status, and dollar-denominated stablecoins will rise in value. As these tokens will now be worth more than a dollar, their issuer will have an incentive to issue more tokens to restore the one-to-one exchange rate with the dollar. In the process, they will buy, with proceeds from the additional tokens they issue and sell, more long-dated US Treasuries to backstop their increased token supply. Bingo! Trump’s twin strategy is fulfilled: the dollar is devalued while demand for long-term US government debt rises, thus pushing down US Treasury yields and his government’s debt servicing costs."

unherd.com/2025/03/trumps-cryp

UnHerd · Trump’s crypto time bombBy Yanis Varoufakis
#USA#Trump#Dollar

Canada is back in fashion:

"Canada is the second-largest country by land mass, with the world’s longest coastline. It is bookended by the Pacific and Atlantic oceans, making it ideally situated for global trade.

Marko Papic, chief strategist at BCA Research, also reckons Canada could be better off in a warmer world. “Global warming could increase agricultural yields, open up large swaths of the country to mineral exploration, and allow for new trade routes through the Arctic,” he said.

The country is energy independent, with the world’s largest deposits of high-grade uranium and the third-largest proven oil reserves. It is also the fifth-largest producer of natural gas.

Canada boasts a huge supply of other commodities too, including the largest potash reserves (used to make fertiliser), over one-third of the world’s certified forests and a fifth of the planet’s surface freshwater. Plus, it has an abundance of cobalt, graphite, lithium and other rare earth elements, which are used in renewable technologies.

“Canada absolutely has potential to be a global superpower,” added Papic. But the nation has lacked the visionary leadership and policy framework to capitalise on its advantages.

US President Donald Trump’s tariff threat has, however, shifted the Overton window. There is now a growing political consensus to unlock Canada’s economic potential and reduce its dependence on exports to its southern neighbour. That task will fall to either Prime Minister Mark Carney or opposition leader Pierre Poilievre following an election this year.

Canada’s GDP has long trailed its G7 peers, ranking 16th globally in purchasing power parity terms. A country with its geography could clearly generate higher output. To do so, the Canadian economy needs to become more efficient, raise investment and attract more high-skilled workers. Here’s how."

ft.com/content/d4813838-66b2-4

#Canada#USA#Trump

A half hour worth of thoughtful conversation and incisive analysis of #nature #conservation -- the historical and political context, questions of privilege and priority, and the role of #science and #scientists. Four leading #Indian ecologists and thinkers worth listening to...
m.youtube.com/watch?feature=sh
#ecology #PoliticalEcology #PoliticalEconomy

"Now as China is forming new global supply chains, it’s building on existing ones established by Japan and South Korea as well as the West. Chinese EV makers can build on Toyota and Nissan’s supply chain in Thailand. Chinese electronics companies can build on Samsung’s manufacturing base in Vietnam.

And, like Japan before it, China is using these economic linkages to support its own national interests while framing them as mutually beneficial partnerships. China is not the only country that loves using the phrase “win-win” when describing international partnerships. Shinzo Abe used it frequently when talking about Japan’s relationship with the US, EU, Russia, Asia, and of course China. For decades, Japan claimed credit for using aid and investment to help its Asian neighbors develop economically while turning the region into Japan’s manufacturing backyard. Throughout this whole process, Japan was careful to maintain control over core technology and prevent technology “leakage” to other countries. Now China is doing many of the same things with a similar framing.

But there is one important difference. China appears willing to leverage its control over technology, machinery, and critical inputs to actively undermine the industrial development of other countries—India being the prime example. In a not-so-ironic twist, China’s approach looks more like that of another great power, namely US efforts to cut out China."

high-capacity.com/p/china-is-t

High Capacity · China is trying to reshape global supply chainsBy Kyle Chan

"Presenting new research, Dylan Sullivan and Jason Hickel mount a devastating critique of the impact of structural adjustment in Africa in the 1980s and 1990s. Drawing on recent data on Africa’s material resource use, Sullivan and Hickel show how during this period structural adjustment programmes led to a significant increase in ‘unequal ecological exchange’, a process whereby African countries were compelled to export more materials, energy, and other resources than they received in imports. The difference between the two, Sullivan and Hickel argue, represented a transfer of real tangible materials from Africa to the capitalist world economy, for free."

roape.net/2025/02/28/plunderin

"Although his promises of economic relief tapped into a real problem, Trump is offering the wrong solutions. The policies he supports will not meaningfully change the unpopular economic model that produced the wave of anger he rode to victory. Instead, his proposed tariffs are likely to increase the cost of living and deliver few benefits for the American working class. If his administration goes through with its plans to dramatically reduce the size of the public sector, the U.S. government will lose much of its ability to deliver on big projects for years to come. And his mercantilist policies could both incite economic instability abroad and shrink the United States’ capacity for economic leadership.

But the revival of American economic nationalism need not spell the end of a global pursuit of more inclusive, sustainable growth. Countries such as Brazil, South Africa, and the United Kingdom are already experimenting with ambitious economic agendas at home, and proposals abound to make multilateral institutions more equitable and effective. A retreating United States may not be in any position to lead this reform effort. Yet its absence will leave a space that other countries could fill.
(...)
There is no guarantee that the coming rebalancing of the global order will lead to a more equitable and sustainable future. To move toward an economic system with affordable access to finance, fair governance of global trade, and support for all countries to invest in and benefit from the growth of green industries, governments must be willing to take bold steps. They must learn the right lessons from Trump’s victory—that the current economic model is failing and that the incremental policies Biden and Harris offered would not have saved it. But neither will the protectionist agenda Trump has proposed."

foreignaffairs.com/south-afric

Foreign Affairs · The Broken Economic OrderHow to rewire the international system in the age of Trump.

In June 2024, Kim Stanley Robinson was invited to the University of Oxford at the Hertford College for the official launch of the "Oxford Ministry for the Future" (OMF), which hopes to amplify voices for a sustainable political economy of the future.

The inaugural event featured Kate Raworth (author of Doughnut Economics) and #KimStanleyRobinson alongside some very, very interesting panelists.

Here is that event:
youtube.com/watch?v=A8bzgzSr8RQ

#Trump and #PoliticalEconomy of the #goldprice

"... the gyrations of the Trump regime are fuelling global uncertainty. On the one hand it is asserted that the high value of the dollar is one of the key factors in the trade deficits of the US and is undermining the US industrial base via cheaper imports. On the other hand Trump insists that dollar supremacy must be maintained, implying a stronger dollar, with tariffs pushing up its value in global currency markets."

wsws.org/en/articles/2025/02/2

Gary Stevenson: Why Left and Right Economic Policies Are Doomed to Fail

Gary Stevenson, a former Citibank trader turned inequality expert, delivers a hard-hitting two-part series exposing why both left- and right-wing economic policies are bound to fail. After making a fortune predicting economic downturns, Stevenson realized that rising inequality is the root cause of economic dysfunction. Now, he’s breaking down how mainstream policies—regardless of political affiliation—fail to address this growing crisis.

In Part 1, Stevenson dissects Labour’s economic approach, which he calls “managed sensibilism.” Their plan? Borrow a little more, tax a little more, and invest a little more—an approach that economists praise but one that has already failed in the U.S. and Germany. While GDP growth and unemployment figures look strong, ordinary people are struggling with rent, bills, and even food. The real issue is inequality—and Labour, like Biden’s Democrats, is ignoring it.

Instead of taxing the wealthy, Labour will either borrow from them—an increasingly difficult task—or raise taxes on working people, making living standards even worse. And with the UK in a much weaker borrowing position than the U.S., their strategy is set to fail even faster. The rich continue to absorb wealth like a black hole, while the middle class shrinks and the poor fall deeper into financial despair.

This episode lays the groundwork for Part 2, where Stevenson will examine the right-wing economic model and why it, too, is destined to collapse.

Watch now and join the discussion—are Western economies trapped in a cycle of failure, or is there a real way forward?

#Economics #Politics #Inequality #GaryStevenson #WealthInequality #FinancialCrisis #MiddleClassCrisis #CostOfLiving #RichGetRicher #EconomicJustice #TaxTheRich #WealthDistribution #GlobalEconomy #UKPolitics #USPolitics #EconomicGrowth #GovernmentFailure #MoneyMatters #PoliticalEconomy #IncomeDisparity #SocialJustice