U.S. politics aren’t ready for this.
Citigroup’s chief global political analyst, Tina Fordham, and Chief Economist Willem Buiter have offered their outlooks on the global state of affairs at the World Economic Forum’s annual meeting in Davos. They did not paint a sunny picture.
Fordham portrayed a world that was seeing rising interstate conflict, increased terrorism, political systems under strain from the refugee crisis, and of course the growing appeal of populist politicians (on the right and left) in Europe and the U.S, or what what Fordham dubs Vox Populi risk.
In fact, Buiter says that because of political dysfunction in the U.S., America is the least-prepared economy for the major economic changes coming in the years ahead.
Via e-mail, he spelled out his concerns: “Dealing with the growing inequality and possible growing job losses caused by the Fourth Industrial Revolution will require a much larger redistributive role for the state. A guaranteed minimum income and universal state-funded health care, funded out of taxes would not raise many eyebrows in Europe. It would meet huge resistance in the U.S., where there only is a decent social safety net for the old.”
Full article: Citi Economist: The U.S. Is the Least Prepared Major Economy for the Huge Changes Ahead (BloombergBusiness)