The Great Disruption | with Gordon Brown

The Great Disruption | with Gordon Brown

2018 to me is a turning point that we are not recognizing as a turning point. We are dealing with a long term, fundamental, underlying problem about how we manage globalization and make it work. I think we’ve got to be aware that if we cannot reform our international institutions and show the way forward for managing globalization in this multipolar world in a better way, then we face the prospect that 2018 has indeed been a turning point. That the trade wars and the currency wars, the Chinese and American issues, are not simply about that, they’re about what sort of global order are we going to have in the future. I would say, having looked at this, yes, we’re dealing with huge transformations. The Washington Consensus, which has been dominant for thirty or forty years does not even work for Washington. Free trade without fair trade, a free for all in trade, has millions of losers and not simply gainers. But the social contract that was underpinning the Washington Consensus has also broken down, because wages no longer guarantee people a decent income. And poverty amongst children, particularly in working families, is about two-thirds of poverty in most countries in the West. But the response to the Washington Consensus failure is the interest in protectionism. And yet, we must know that it’s self-defeating, and we must get that argument across. Now my point is this, unless we can find a way of managing the global order better, then not only will we have exactly the same problems that we’ve got of economic discontent, cultural pessimism, and anti-politic sentiment, but we will also see a splintering of the global order. If the Washington Consensus won’t do, if protectionism is out , and if we don’t want to see a division between the East and West that is of a permanent nature fracturing the rules order from 1945, then we have got a pretty convincing case about how, issue by issue, our international order can be rebuilt to accommodate the needs of the different parts of the world, to update to the new economy that I’m talking about, but also to deal with the fundamental problems that still exist, whether it be climate change, whether they be financial stability, whether they be trade or whether they be growth.

5 thoughts on “The Great Disruption | with Gordon Brown

  1. In Germany, we have the disease of "Ankündigungspolitik", which means that politicians are always saying what great plans they have and what needs doing but they never act. We just hear all the time what ought to be done but never see it happening. That and Merkel's unconditional protection of the car industry, pushing CO2 reduction way into the future. 5 Litre V8 Diesel SUV's are ok according to Merkel because they make less CO2 than 5 litre V8 petrol engines (haha). With this lot in, nothing will happen.

  2. In Europe, you really need to worry about populism now, it only leads to disorder. That's how China suffered 50 years before during the cultural revolution.

    In China, we need to worry about America and totalitarianism. The good news is our government do carry out long-term plans.

    In the US, the coming financial crisis and the collapsing world order.

  3. Wages don't support a decent standard of living because too much money gets syphoned off to the globalist oligarchy. The banks were bailed out but they didn't repay the money. The EU countries bailed them out from tax revenues or credits from financial institutions (to be repaid from future tax revenues with interest) some of whom share owners with the banks thar were bailed out. The politicians and the globalist oligarchy robbed the people poor. Ps: The bailout took over 1.5 trillion euros from the people of Europe and gave it to the mostly private-owned banks without anything in return. This is theft at the highest scale! Public money to private hands without a return transaction of equivalent value. THE EU IS THE MOST CORRUPT INSTITUTION EVER!

  4. Shut down tax havens.
    Modify the WTO agreement to protect against tax avoidance.
    Restore the balance between capital and labor. >> Presently labor is taxed on both income (income tax) and expenditure (sales tax), while corporations pay taxes on profits. The same simple principles should be applied to all taxation: income tax for both people and corporations, fundamentally at the same rate with a few points moving up or down in recognition of public services or as incentives.
    Taxation would be fairer, the bureaucracy would be simpler, lobbying would be less significant making democracies stronger, and the entire tax advisory sector could be reduced, thus increasing overall productivity.
    Recover all bailout money.

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