The stagnant debates in our hermit kingdom of a political economy
NZ's 'Bread & butter' economics of 'the rising tide lifts all boats' harks back to the stale debates of the 1990s & 2000s, before the world realised this 'third way' of financialised globalism failed
TLDR: The rest of the world is talking about inflation falling naturally and interest rate hikes ending soon, unlike here, where a moral panic about inflation and debt rages.
Debates about the political economy globally are also way ahead of ours, which remain stuck in the ruts of thinking about the ‘bread and butter’ economics of ‘the rising tide lifting all boats’.
This is 15 years after the Global Financial Crisis, rising inequality, the unequal effects of pandemics and the enforced end of unfettered financial globalism showed that the 1990s ‘third way’ approach of just cutting taxes, repressing the size of Government and getting out of the way of businesses simply didn’t work, either for most citizens or the future of capitalism.
Everyone else has moved on. We haven’t.
That’s evident in this week’s news about slowing inflation, the winding back of rate hikes and a fascinatingly deep and interesting contribution to the debate about the future of the political economy from Australia’s Labor Treasurer Jim Chalmers.
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Elsewhere in the news overnight in our political economy, geo-politics and the global economy:
Investors are celebrating a slowing of the Federal Reserve’s rate hikes and market hopes there’s only one more hike left next month, along with fresh talk from the Bank of England that it has probably finished hiking too and hopes the European Central Bank is almost finished;
Universities report a surge of enrolments from Chinese students who told their Government this week that they can’t stay at home and study online and must go overseas to get their qualifications; and,
Green co-leader James Shaw said last night he wouldn’t contest the Wellington Central electorate in the election on October 14, nominating Wellington City Councillor and rising-star Tamatha Paul to run against whoever Labour and National put up, now that incumbent Grant Robertson is going list-only and Nicola Willis has opted to run in Ohariu.
Stagnation in the hermit kingdom of our political economy
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