The pivot towards worker-centric economic policies emerged as a response to the challenges faced by the American working class, particularly after the losses in 2016. This approach shifts the focus away from consumer-centric frames and the benefits of global trade, raising skepticism about whether the worker-centric frame adequately addresses broader societal issues. While the negative impacts of global trade, like the 'China shock', are acknowledged, they do not fully encapsulate the various challenges confronting the working class. The conditions of life for working-class Americans encompass multiple dimensions that extend beyond the availability of traditional blue-collar jobs. As such, simplifying the issues facing the working class to just employment opportunities may overlook critical factors influencing their circumstances, revealing potential missteps in the strategies advocated by the Democratic Party and progressive movements.
One of the big buzzwords over the last year or so has been "overcapacity." There's a constant line of argument that China is unfairly flooding the world with unprofitable goods and creating huge, unsustainable imbalances. Western countries, particularly the US (but also Europe), have responded by raising tariffs and engaging in domestic industrial policy in order to compete. But is the strategy sound? Are the basic premises of the problem correct? On this episode of the podcast, we speak with Columbia Professor Adam Tooze, the author of several books, as well as the popular Chartbook newsletter. He argues that the overcapacity framing is misguided, and that the US may be making a mistake putting its chips down on an industrial revival. He talks us through some of the actual weaknesses of the Chinese model, as well as its global political reverberations.
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