Macrodose - Dedollarisation, Bretton Woods III, and a global wealth tax?
Jan 25, 2023
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Nobel Prize-winning economist Joseph Stiglitz discusses the shift away from the dominance of the US dollar, implications for US economic power, and the need to tackle wealth inequality. The podcast explores the concept of Bretton Woods III, challenges to US economic dominance, and debates on implementing a global wealth tax and a 70% top rate of income tax.
Global economy moving away from US dollar, potential challenge to US hegemony.
Transition to Bretton Woods III and advocacy for global wealth tax signal shifts in global economics.
Deep dives
Global Economic Shifts: Countries Moving Away from Dollar Dominance
Recent news indicates significant shifts in the global economy away from the dominance of the US dollar. Saudi Arabia considering selling oil in non-dollar currency could reshape the oil trading landscape. Similarly, Brazil and Argentina planning a new trade currency called the SEER suggest a move towards alternatives to the dollar system. These developments reflect a trend of major economies distancing themselves from the dollar-led global order, potentially challenging US economic hegemony.
Transition to Bretton Woods III: A Changing International Monetary System
An analysis by Zoltan Poser proposes the emergence of Bretton Woods III, signaling a transition in the international monetary order. The concept references historic changes in monetary systems and suggests a shift from the current dollar-dominated framework. Factors such as the Russian invasion of Ukraine and global economic shocks have incentivized countries to explore new currencies, potentially altering the balance of power in the global economy.
Wealth Inequality and Taxation: Advocating for Higher Taxes on the Super-Rich
Nobel laureate Joseph Stiglitz emphasizes the need for imposing higher taxes on the super-rich to address escalating wealth inequality. Proposals include a 70% top income tax rate globally and a 2% annual tax on accumulated wealth. Stiglitz's advocacy aims to challenge existing economic discourse and redistribute wealth more equitably, signaling a shift towards addressing income disparities through progressive taxation.
In this week’s Macrodose, James Meadway breaks down the shift away from the dominance of the dollar (0:41), what this means for US economic power (3:13), and a call from noble-prize winning economist Jospeh Stiglitz to tackle wealth inequality (11.26).
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