Fed & Market State
NYT – The President and Chief Economist of the Federal Reserve Bank of Dallas stumble across the fact we are increasingly transitioning into a market state when it…
…set out to document the connection between globalization and public policy. We found that the more globalized nations tend to pursue policies that achieve faster economic growth, lower inflation, higher incomes and greater economic freedom. The least globalized countries are prone to policies that interfere with markets and lead to stagnation, inflation and diminished competitiveness.
And they also manage to touch on the lack of rule set shifts – which is the crux of the problem –
We found that more globalized counties do no better in limiting the size of government, which we consider vital to economic prosperity. They are worse than the less globalized in containing public entitlements and subsidies, which must be paid for by higher individual income taxes.
All without any hint of understanding the framework within which these developments are taking place. This inability (at the strategic level) will be a major factor in potentially collapsing this iteration of globalization.
-Shlok
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