Unfortunately, I agree with much of the sentiments of Michael Pettis and have been teaching them in my International Macro classes (in the case of the Euro) for the past decade. For various reasons, I continue to prefer Brazil out of the BRICS and believe things will be substantively better for them than for the others. Other than that, my views pretty much line up with Pettis.
Those wanting just a summary click here.
Those wanting more in Pettis own words click here.
As I pointed out in my last blog, there are millions of jobs that have been lost in manufacturing since China joined the WTO. Absent intervention, these jobs are gone forever, and with the loss of millions of construction jobs, unemployment for the low skilled will become chronic.
I have suggested that that this will lead to a level of social unrest not seen in Amercia since the 60s. Pettis believes that both the US and UK will become trade protectionist. I see this as the easiest and most likely way that policy makers will deal with problems of social inequality. Fundamental reform of education is much tougher, especially in a budget constrained enviroment.
Those wanting just a summary click here.
Those wanting more in Pettis own words click here.
As I pointed out in my last blog, there are millions of jobs that have been lost in manufacturing since China joined the WTO. Absent intervention, these jobs are gone forever, and with the loss of millions of construction jobs, unemployment for the low skilled will become chronic.
I have suggested that that this will lead to a level of social unrest not seen in Amercia since the 60s. Pettis believes that both the US and UK will become trade protectionist. I see this as the easiest and most likely way that policy makers will deal with problems of social inequality. Fundamental reform of education is much tougher, especially in a budget constrained enviroment.
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