The Intelligence from The Economist Zero-sum: the imperilled global economic order
Jan 13, 2023
Join Henry Kerr, Economics editor at The Economist, and Tom Gardner, Horn of Africa correspondent, as they dissect the current global economic landscape. They discuss the alarming rise of protectionism and zero-sum competition, threatening long-standing international cooperation. Gardner highlights the fragile peace in Ethiopia, revealing the struggles of Tigrayan refugees and ongoing conflicts. The episode also touches on Mexico's narco corridos, reflective of the country's complexities and cultural narratives amidst crime.
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Zero-Sum Economics
- The global economic order is shifting from open cooperation to zero-sum competition.
- China's state-controlled economy and America's industrial policies fuel this destructive trend.
US Industrial Policy
- America's response includes the CHIPS Act and Inflation Reduction Act.
- These subsidize domestic production, particularly for semiconductors and green energy.
Subsidy Competition
- Competing subsidies between major economies can be wasteful.
- True decarbonization requires free trade and market-driven supply chains.