Category Archives: Economics

Previews: The Economist Magazine – Sept 9, 2023

The Economist Magazine (September 9, 2023): The new Middle East has more money and less mayhem. For now…; America’s Supreme Court should adopt new ethics standards How artificial intelligence will affect the elections; Javier Milei would be a danger for democracy in Argentina….

The new Middle East has more money and less mayhem. For now

Economies are booming and wars are fading. But climate change is looming

If you thought the Middle East was stagnant, think again. The Gulf economies are among the richest and most vibrant on the planet, helped by a Brent crude oil price that rose back to over $90 per barrel this week. A $3.5trn fossil-fuel bonanza is being spent on everything from home-grown artificial intelligence models and shiny new cities in the desert, to filling the coffers of giant sovereign-wealth funds that roam the world’s capital markets looking for deals.

America’s Supreme Court should adopt new ethics standards

Three judges are struggling to hold up the roof of the Supreme Court

Lifetime tenure can easily slip into entitlement

Next term will be agonising for the Supreme Court. Some combination of voters and courts will determine whether Donald Trump becomes president again and whether he goes to prison. President Joe Biden’s son has a case before the courts. Dozens of states have changed their voting laws since 2020 and the nine justices on the Supreme Court may be asked to look at them. If the presidential election in 2024 is close, the court may have to step in and adjudicate. With so much at stake, America needs a Supreme Court that is broadly seen as legitimate and, ideally, impartial. Regrettably, trust in the court is at its lowest point since pollsters began asking about it.

Opinion: AI Disrupting 2024 Elections, A Rise In Scare Tactics, Owning An Airline

‘Editor’s Picks’ Podcast (September 11, 2023) Three essential articles read aloud from the The Economist. This week, how much will artificial intelligence affect the elections of 2024? Also, the ways cynical leaders are using scaremongering tactics both to win and to abuse power (9:35) and why everyone wants to own an airline these days (17:00).

Previews: The Economist Magazine – Sept 2, 2023

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The Economist Magazine (September 2, 2023): This week’s issue features AI voted: How artificial intelligence will affect the elections of 2024; How paranoid nationalism corrupts; How to stop a three-way nuclear arms-race, and more…

How artificial intelligence will affect the elections of 2024

Disinformation will become easier to produce, but it matters less than you might think

Politics is supposed to be about persuasion; but it has always been stalked by propaganda. Campaigners dissemble, exaggerate and fib. They transmit lies, ranging from bald-faced to white, through whatever means are available. Anti-vaccine conspiracies were once propagated through pamphlets instead of podcasts. A century before covid-19, anti-maskers in the era of Spanish flu waged a disinformation campaign. They sent fake messages from the surgeon-general via telegram (the wires, not the smartphone app). Because people are not angels, elections have never been free from falsehoods and mistaken beliefs.

How paranoid nationalism corrupts

Cynical leaders are scaremongering to win and abuse power

People seek strength and solace in their tribe, their faith or their nation. And you can see why. If they feel empathy for their fellow citizens, they are more likely to pull together for the common good. In the 19th and 20th centuries love of country spurred people to seek their freedom from imperial capitals in distant countries. Today Ukrainians are making heroic sacrifices to defend their homeland against Russian invaders.

Opinion: No Fix For China’s Economy, Firms Fighting Disrupters, Palestine Wine

‘Editor’s Picks’ Podcast (August 28, 2023) Three essential articles read aloud from the The Economist. This week, why China’s economy won’t be fixed, America’s corporate giants are fighting back against disrupters (10:15) and the challenge of making wine in Palestine (21:50).

Previews: The Economist Magazine – August 26, 2023

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The Economist Magazine (August 26, 2023): This week’s issue features Xi’s failing model: Why he won’t fix China’s economy; Biden’s Asian alliance-building; Prigozhin’s death shows that Russia is a mafia state and more….

Why China’s economy won’t be fixed

An increasingly autocratic government is making bad decisions

Whatever has gone wrong? After China rejoined the world economy in 1978, it became the most spectacular growth story in history. Farm reform, industrialisation and rising incomes lifted nearly 800m people out of extreme poverty. Having produced just a tenth as much as America in 1980, China’s economy is now about three-quarters the size. Yet instead of roaring back after the government abandoned its “zero-covid” policy at the end of 2022, it is lurching from one ditch to the next.

Prigozhin’s death shows that Russia is a mafia state

A healthy country uses justice to restore order. Mr Putin uses violence instead 

Yevgeny Prigozhin gives an address in camouflage and with a weapon in his hands in a desert area

As we published this editorial, it was not certain that Yevgeny Prigozhin’s private jet was shot down by Russian air-defences, or that the mutineer and mercenary boss was on board. But everyone believes that it was and that his death was a punishment of spectacular ruthlessness ordered by Russia’s president, Vladimir Putin. And that is the way Mr Putin likes it.

Opinion: Germany Falters In EU, China’s Bitter Youth, Language Lessens With AI

‘Editor’s Picks’ Podcast (August 21, 2023) Three essential articles read aloud from the latest issue of The Economist. This week,  is Germany once again the sick man of Europe? Also, China’s disillusioned youth  (10:50) and why AI could make it less necessary to learn foreign languages (17:35).

Opinion: China’s Youth Has Sacrificed Freedoms, Now Learn To “Eat Bitterness”

For generations, the Chinese Communist Party has held on to power partly through an implicit bargain with its citizenry: Sacrifice your freedoms, and in exchange, we’ll guarantee ever-rising living standards.
That deal has not held up for today’s youths.
Opinion | Ignatius, Summers, Rampell, more discuss China's economy in  turmoil - The Washington Post

Until quite recently, China’s young people seemed poised to take on the world — and many of them appeared to believe they would. They’ve shown a streak of hyper-nationalism, stoked by the country’s leadership and reinforced by China’s growing economic and geopolitical strength.

China’s Gen Z came of age, after all, in the wake of the country’s accession to the World Trade Organization and amid a rapid rise in incomes.

President Xi Jinping has said young people must learn to “eat bitterness” (an idiom that roughly means to toughen up by enduring hardship). Today’s youths, leaders say, are not too good for manual labor or moving to the countryside — experiences Xi and his generation once had to endure.

China’s resilience after the financial crisis, particularly relative to the sluggish recovery across most of the West, suggested China and its citizens had nowhere to go but up. Political dysfunction in many of those same Western democracies, expertly exploited by Chinese propaganda, reinforced this perception.

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Previews: The Economist Magazine – August 19, 2023

The Economist Magazine (August 19, 2023): This week’s issue features Why are China’s young people so disillusioned?; China’s defeated youth – When Xi Jinping plays down their individual aspirations in favour of the collective interest, he adds to their gloom.

Why are China’s young people so disillusioned?

Xi Jinping wants them to focus on the party’s goals. Many cannot see why they should

The crowd did not seem excited to see George Michael and Andrew Ridgeley. When Wham! became the first Western pop group to perform in Communist China, the audience was instructed to stay in their seats. It was 1985 and, despite appearances, the young people in attendance were in fact joyous. The country around them was by no means free, but it was starting to reform and open up. Over the next three decades the economy would grow at a rapid pace, producing new opportunities.

China’s defeated youth

Young Chinese have little hope for the future. Xi Jinping wants them to toughen up

A worker tests parts for e-cigarettes on a production line

In the southern city of Huizhou an electronics factory is hiring. The monthly salary on offer is between 4,500 and 6,000 yuan (or $620 and $830), enough to pay for food and essentials, but not much else. The advertisement says new employees are expected to “work hard and endure hardship”. The message might have resonated with Chinese of an older generation, many of whom worked long hours in poor conditions to give their children a brighter future. But many of those children now face similar drudgery—and are unwilling to endure it. “I can’t sit on an assembly line,” says Zhang, a 20-something barista with dyed-red hair at a local tea shop. He scoffs at the idea of making such sacrifices for so little gain. The job at the tea shop pays just 4,000 yuan a month, but he enjoys chatting up customers.

Opinion: The Biden China Strategy, Saudi Arabia’s Sports Push, Green EV’s?

‘Editor’s Picks’ Podcast (August 14, 2023) Three essential articles read aloud from the latest issue of The Economist. This week, why Biden’s China strategy isn’t working, Saudi Arabia’s plan to dominate global sport (10:20) and how green is your electric vehicle, really? (17:55).

Previews: The Economist Magazine – August 12, 2023

Costly and dangerous: Why Biden’s China strategy isn’t working

The Economist Magazine (August 12, 2023 issue): Why Biden’s China strategy is not working; Saudi Arabia upends sport; The attack on universal values; Twitternomics lives on; How green is your EV and more…

Costly and dangerous: Why Biden’s China strategy isn’t working

Liam Eisenberg

Supply chains are becoming more tangled and opaque

On august 9th President Joe Biden unveiled his latest weapon in America’s economic war with China. New rules will police investments made abroad by the private sector, and those into the most sensitive technologies in China will be banned. The use of such curbs by the world’s strongest champion of capitalism is the latest sign of the profound shift in America’s economic policy as it contends with the rise of an increasingly assertive and threatening rival.

How America is failing to break up with China

The countries’ economic ties are more profound than they appear

A briefcase being handed from one person to another with their hands handcuffed together
image: alberto miranda

When it comes to tracing the geography of global supply chains, few companies provide a better map than Foxconn, the world’s largest contract manufacturer. This year the Taiwanese giant has built or expanded factories in India, Mexico, Thailand and Vietnam. The Chinese production sites once loved by Western companies are firmly out of fashion. Souring relations between the governments in Washington and Beijing have made businesses increasingly fretful about geopolitical risks. As a consequence, in the first half of the year, America traded more with Mexico and Canada than it did with China for the first time in almost two decades. The map of global trade is being redrawn.