An Existential Fight between Green and Carbon Assets (with Mark Blyth)
Nov 21, 2024
auto_awesome
Mark Blyth, an international economist from Brown University and author of several influential books, dives deep into the clash between green initiatives and carbon assets. He discusses the historical roots of economic inequalities and the political dynamics shaping voter behavior, particularly among the working class. Blyth emphasizes the need for a balance between immediate economic concerns and long-term climate goals. He also explores the impact of global power dynamics on U.S. policies, the disconnection between economic statistics and personal experiences, and the importance of education in this evolving landscape.
The current economic climate reveals a deepening crisis in neoliberalism affecting the bottom 60% of earners while benefiting the top 40%.
Political divides are amplifying, with educational backgrounds increasingly shaping party alignment, leading to a disconnect between traditional working-class voters and the Democratic Party.
Deep dives
The End of a Macroeconomic Regime
The current economic climate represents the conclusion of a long-standing macroeconomic regime that has persisted for approximately 40 years. This era has led to increasing fragility, predominantly affecting the bottom 60% of income earners while the top 40% have significantly benefited. The emergence of figures such as Trump has highlighted the growing structural issues stemming from this neoliberal framework, which has become evident across various global contexts, including Europe and Latin America. This shift has not only marked a crisis in neoliberalism but has also paved the way for fundamental changes in economic governance.
Polarization of Political Parties
The political divide has intensified, as evidenced by the college diploma divide, where those with higher education increasingly align with the Democratic Party, while those without a degree lean towards the Republicans. Over time, the Democratic Party has evolved into a platform predominantly representing urban elites who often overlook the concerns of less educated individuals. This growing disconnect has led to a significant credibility gap, as traditional working-class voters feel abandoned by a party that has become associated with the interests of the affluent. As a result, the electoral landscape is now heavily influenced by these demographic and educational divides.
Divergent Economic Experiences and Impacts of Immigration
Economic disparities across regions highlight the varying experiences of individuals regarding issues like immigration and job displacement. While immigration may appear to benefit urban areas filled with well-educated professionals, it can detrimentally affect struggling communities that face job loss and decreased economic opportunities. This uneven distribution of resources fosters resentment as locals perceive immigrants as competitors for already limited public services and housing. Thus, perceptions of immigration's impact are shaped significantly by one's socioeconomic context and community circumstances.
Historical Context and Future Predictions
Looking ahead, systemic changes in both the economy and politics suggest that we are on the brink of a significant recalibration. This new normal reflects a convergence of various trends, including tariffs aimed at reshoring production and the reorganization of labor markets. The dynamics between the United States and other global powers, particularly China, will play a crucial role in shaping future economic policies and international relations. Despite current challenges, there remains room for hope, as the ongoing evolution in political, economic, and social landscapes could yield necessary adjustments for a more equitable future.
Welcome to What Just Happened, a Recall This Book experiment. In it you will hear three friends of RTB reacting to the 2024 election and discussing the coming four years. Mark Blyth (whose planned February 2020 appearance was scrubbed by the pandemic) is an international economist from Brown University, whose many books for both scholars and a popular audience include Great Transformations (2002), Angrynomics (2020; with Eric Lonergan) and (with Nicolo Fraccaroli) Inflation: A Guide for Users and Losers(New York: Norton 2025).