An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
Frank Chaparro — America has lost faith in big business
Americans are no longer buying trickle down and are now viewing the relationship between workers and owners/management as more adversarial than mutually beneficial.
I don't think Americans and Europeans really grasp how fully irrelevant their economic and development models have become to the rest of the world.
The rapid fall in global poverty and inequality in recent years happened when the IMF/US/EU/World bank were rejected and China began to dominate and applied the Singapore/China development model to their growing sphere of influence. China not only extracted resources and agriculture but promoted their brand of infrastructure and industrial development on nations in exchange for resources, to avoid the resource colonialism of western development. Less focused on cornering countries into debt and currency crisis, they take a long term view on economic development and are certain of the viability of their investment because they focus on boosting real output through infrastructure and engineering combined with real increases in agriculture and industrial output and real resource production that will pay them back. The western model, designed to ensure countries pay back foreign currencies while impeding real economic growth might be "efficient" and "productive" by orthodox economic measures but it makes people poor, slows growth, and causes mal-investment and instability.
Orthodox econ knows their system is best and love to argue it though. Fortunately, no one cares anymore and they've just moved on.
Places like Ivory coast have maintained 9% growth with 2% inflation despite the downturn in commodities BECAUSE they abandoned the western model for the Asian model. Kenya's growth barely budged this time maintaining around 5%. Ethiopia clipping along at 7.5%. Even developed economies like China are growing at 6.5%. While emerging nations like Pakistan and India around 5%.
The US is stalled at 1% and Europe at 3%. In the US sphere of influence: Brazil is at -2.5%, Canada 1.9% on verge of banking crisis, Mexico 2%, Columbia 1.6%, Venezuela -20%, Chile 1.6%
Clearly the Asian model has worked better in recent decades. With the differential in growth rates between Asian model vs Western model countries, the proof is in the pudding and there is no point engaging orthodoxy.
Right, the Chinese are doing now what the West should have done rather than imposing imperialism and colonialism. And if that had happened the entire world would now be developed and many conflicts would have been avoided.
I like American family names. Chaparro in some Latin American countries means dick.
Cagan, on the other hand, is the third person plural of the present tense of the verb to shit: They shit, ellos/ellas cagan. I guess one could replace the C with a K, to get Kagan. :-)
6 comments:
Well it's about goddamn time.
It only took being kicked in the teeth about a hundred thousand times.
I don't think Americans and Europeans really grasp how fully irrelevant their economic and development models have become to the rest of the world.
The rapid fall in global poverty and inequality in recent years happened when the IMF/US/EU/World bank were rejected and China began to dominate and applied the Singapore/China development model to their growing sphere of influence. China not only extracted resources and agriculture but promoted their brand of infrastructure and industrial development on nations in exchange for resources, to avoid the resource colonialism of western development. Less focused on cornering countries into debt and currency crisis, they take a long term view on economic development and are certain of the viability of their investment because they focus on boosting real output through infrastructure and engineering combined with real increases in agriculture and industrial output and real resource production that will pay them back. The western model, designed to ensure countries pay back foreign currencies while impeding real economic growth might be "efficient" and "productive" by orthodox economic measures but it makes people poor, slows growth, and causes mal-investment and instability.
Orthodox econ knows their system is best and love to argue it though. Fortunately, no one cares anymore and they've just moved on.
Places like Ivory coast have maintained 9% growth with 2% inflation despite the downturn in commodities BECAUSE they abandoned the western model for the Asian model. Kenya's growth barely budged this time maintaining around 5%. Ethiopia clipping along at 7.5%. Even developed economies like China are growing at 6.5%. While emerging nations like Pakistan and India around 5%.
The US is stalled at 1% and Europe at 3%. In the US sphere of influence: Brazil is at -2.5%, Canada 1.9% on verge of banking crisis, Mexico 2%, Columbia 1.6%, Venezuela -20%, Chile 1.6%
Clearly the Asian model has worked better in recent decades. With the differential in growth rates between Asian model vs Western model countries, the proof is in the pudding and there is no point engaging orthodoxy.
I'm from [insert corporate name here], and we're here to help you.
Right, the Chinese are doing now what the West should have done rather than imposing imperialism and colonialism. And if that had happened the entire world would now be developed and many conflicts would have been avoided.
I like American family names. Chaparro in some Latin American countries means dick.
Cagan, on the other hand, is the third person plural of the present tense of the verb to shit: They shit, ellos/ellas cagan. I guess one could replace the C with a K, to get Kagan. :-)
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