Odd Lots The Coronavirus Crisis Could Lead To The Mother Of All Trade Imbalances
May 14, 2020
Join Matt Klein, an economics columnist at Barron’s and co-author of "Trade Wars Are Class Wars," as he unpacks the fallout from the pandemic on global trade. He discusses how China's factory activity is hampered by plummeting demand worldwide. Klein explores the intricacies of U.S.-China trade tensions, linking them to rising income inequality and systemic barriers within China. He delves into the historical context of economic imbalances and underconsumption, tracing their relevance in today's market. Get ready for a thought-provoking dive into geopolitics and trade dynamics!
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Trade Wars as Class Wars
- Trade wars are driven by internal class conflicts, not just national interests.
- Inequality creates economic distortions that harm people globally.
Economic Imbalances
- Global economic imbalances arise when societies produce more or less than they consume.
- This can be beneficial for development or harmful if imports displace domestic production.
Impact of Chinese Policies
- Chinese industrial policy and worker repression create excess savings.
- This harms American workers through displaced production and unsustainable borrowing.
