Why economic change could come to China sooner than you think.
Alan Greenspan asks how so many experts, including him, failed to see the 2008 financial crisis approaching. Part of the answer is a very old idea: Keynesian “animal spirits,” the irrational elements of decision-making that have been left out of economic forecasting for too long.
Nicolás Maduro, Hugo Chávez’s anointed heir, is expected to cruise to victory in Venezuela’s upcoming presidential elections. But the easy part ends there. Once in office, Maduro will face a dysfunctional economy, high crime, and the broken political system Chávez left behind.
While the grim effects of the 2008 financial crisis still resonate across the globe, the recession wasn’t all bad: it triggered fundamental economic restructuring, and the result is a U.S. economy poised to emerge stronger than it was before. Although it’s too soon to say with certainty, even Europe may come out ahead.
The urban poor and unemployed youth continue to take to the streets in Egypt.
The protestors taking to Egypt’s streets are overwhelmingly male, urban, and destitute. They do not have the time or patience to wait for the democratic process to fix their country and its flailing economy. In desperation, they might usher in a second revolution — this one an uprising of the poor.
To get out of its economic hole, the United States needs to cut spending and increase revenue. But policymakers must not let new taxes harm low-income working families, who have the fewest resources to contribute to reducing the deficit anyway.