The opaque global economy
“The good that globalization has done is hard to dispute,” says Robert Samuelson in The Washington Post, but it has a dangerous Achilles’ heel: a “disorderly global economy” could undo most of that good. Financial crises, “interruptions of crucial supplies (oil, obviously),” brutal trade wars, and violent business cycles show how complex our interconnected global economy can be. And CEOs and economists are as baffled by it as you are. What seems clear is that after years as “the world’s economic locomotive,” the U.S., and the dollar, are losing influence. That could be very good . . . or not. We can’t undo globalization, but hopefully we’ll start to understand it better.
The globalization of the middle class
With all the “widespread gloom and doom in the West,” says Jim O’Neill in the Financial Times, it’s easy to lose sight of a “startlingly positive" phenomenon in the global economy—“We are in the middle of an explosion of the world’s middle class.” According to a Goldman Sachs study, 70 million people a year are entering that wealth group, defined as earning $6,000 to $30,000 a year. Brazil, Russia, India, and China are leading this charge, but it’s broader than that. And yes, it will change the balance of economic power. But “it is important for everyone in the so-called developed world to be constantly aware that these powerful shifts in global wealth are good not only for the developing world, but for them too.”
THE WEEK'S AUDIOPHILE PODCASTS: LISTEN SMARTER
- 13 Urban Outfitters controversies
- 6 things the happiest families all have in common
- The science of sex: 4 harsh truths about dating and mating
- Why gay people of color are still losing
- Russia is stealthily threatening America with nuclear war
- 10 things you need to know today: September 16, 2014
- 43 TV shows to watch in 2014
- What political elites don't understand about Scotland's push for independence
- How Obama inadvertently made an Israeli war with Iran all but inevitable
- Can we lead spiritually fulfilling lives without religion?
Subscribe to the Week