Wolff Responds: U.S. Turn Toward Economic Nationalism 

Regardless of politics and voters, the US is in terminal decline, just like Rome.

I want everyone to stop focussing on FTA and trade and stock market which are mostly for the rich and focus on keeping people happy. We don't want the world's most richest economy or a fastest developing economy. We want a self sustaining, ecological focussed and happy economy without exploitation across the world. We don't want a dog eat dog world. We deserve the best world we can create.

Professor R D Wolff always calls a spade a spade, no beating around the bush on global economic issues. In the last several years I have learnt a lot from his presentations and extended his talks to many friends and students. I hope Professor Wolff will continue educating world leaders how to make the world a better place by closing the widening gaps between the very rich and very poor.

RCEP is not led by China. It is led by ASEAN “The signing of the RCEP Agreement is a historic event as it underpins ASEAN’s role in leading a multilateral trade agreement of this magnitude, despite global and regional challenges and eight years of negotiations,” said Dato Lim Jock Hoi, Secretary-General of ASEAN.

I was under the impression that the RCEP was not led by China, but instead initiated by the 10 Asean countries, with China, Japan, South Korean, Australia and New Zealand being invited/included in the RCEP agreement, along with an open invitation to India subject to future joining if India decides to do so in the future.

Wow I checked that out now we bout to go down and now I'm reading the Financial Stability Report for November. The rest of the world is moving right alone and we look like we gonna be all alone... The US business model of predatory exploitive capitalism has just played out and run it's course we bout to look like a California wild fire on steroids.

International cooperation is the only path to the future. We have chosen our own exile.

Very interesting analysis. Thank you, Professor Wolff.

it is not trump who started "america first". The US has always operated on that basis..This why it has meddled in the business of other countries since the nineteenth century

From MAGA, MAGA, MAGA,.......... to MAAA, MAAA, MAAA (Make America Alone Again). Now, u are truly alone, congratulations.

Hi, Wolff, I'm in China now and I've watched many of your vids concerning economic conflicts between China and the US. It seems that your views are popular in some Chinese media. I wonder whether I can reprint your vids to the video wedsites in China, I'll note the original address. Thanks

RCEP is not led by China. It is an ASEAN initiative chaired by an Indonesian trade official.

Thank you, comrade.

Thank You

All very true and eloquently put by Prof. Wolff, i would also add the the US "Empire" is a very short lived one in historical terms, the US only rose to prominence globally in the late 19th century, and now early 21th century already beginning to fade, that 150 years, Rome in comparison lasted for well over 700 years, and over a 1000 if you include Byzantium ( the East Roman empire ).

There may have been a time when the U.S. could've become isolationist, but it's impossible now - even with Japan as an ally. Industry left the U.S. years ago, and foundries closed as iron was smelted on off-shore Japanese ships. There's very little manufacturing here, now. We'd have to tool-up again. And our easy-to-mine coal has been sold off to other countries, so cost of mining now increases. Those Capitalists have put us in a very precarious position, but most people find it difficult to believe that some folks could be so underhanded with no thought of others' well-being or suffering - mainly because they are 'good' and can't imagine a person wearing a nice suit and a big smile to be so dastardly. And there are still quite a few who think they can whisper a few words, and God'll get 'em (the bad guys), so they think they already did their part (by whispering). As conditions in the U.S. worsen, more people will be turning to mysticism (gods and Martians) because they don't know what else to do.

Having worked for American Corporations here in Australia for 30 years I have seen, especially in the last 20 years such a decline in leadership in management to a point that I would say it now does not exist and hasn’t for 7-10 years,

Thank you Prof. Wolff!

Capitalism works if the people at the top are inclined morally to do the right things for all not just creating shareholder value by exploiting the rest. The corporate system we have now is extremely predatory.

Business class was cowed in both UK and USA and failed to sufficiently object to the historically failed concept of economic ( & other ) nationalism Business was WEAK, WEAK, WEAK !

Brace for impact

Watching on PC. I never wanted to see Prof Wolff this clearly. Help.

Economic nationalism has its root in material reality: different parts of the world have different currencies. This makes international trade vulnerable to financial speculation and other problems. Will your country be competitive tomorrow? I don’t know, let’s ask those people whose „investment“ decisions drive the exchange rates. This generates totally messed up incentives for economic policies and it is totally reasonable to rebel against that system (even though we should be talking about what the correct alternative would be). Having a single currency makes the problem even worse though: then your country having a higher inflation rate than your neighbor kills your economy - but at the same time, inflation is driven mostly by wages; i.e. you end up in a race to the bottom because everyone has an incentive to cut the mass of people’s purchasing power.

Initial conditions are always relevant. The crisis cycle is always significant. The global economic behaviors of nations correlate with their own economic conditions; to varying degrees. Though China's behaviors now leave much to be desired; their behaviors have improved over the past two decades. This is also seen in Russia's behaviors over the past four. The growth stage of the crisis cycle is one where pressure is minimized; and desperation is essentially not a factor. This is a consequence of where a nation is in between growth and collapse. There is real predictive value in understanding this.

Don't many of our big companies have branches or subsidiaries in Asia that can trade, tariff -free right along with the other duty-free Asian companies?

Right on. Chalmers Johnson said something similar. You are both right. The danger of the GOP and it's supporters is also economic.

A system that survives by perminantly balancing trade deficits with debt based recirculation is only short term stable. Political action like Nationalism and Localism are attempts to solve that. If it's not solved you will run into some sort of hard stop or currency crisis eventually. The biggest downside of Nationalism is it is usually driven by the needs of local capatalists to protect their interests not the needs of the national population. I would prefer some sort of tax on fx imbalances - Could be achievable by matching flows through central bank (with no tax) or private banks for excess with a tax hit? Much better to have automatic stabilisers in the system.

I concur with the comments made by several people before me that the RCEP was initially led by ASEAN countries but adding a further six countries, but India decided to leave the pact last year. There are a lot of analyses made by learned people in the East on RCEP, and they have also concluded that India has made a mistake for not joining. Donald Trump visited India last year, so there is speculation that India has made a political decision not to be a signatory of RCEP. In short, the USA Administration has probably sold India short, for political gain and economic sacrifice. It is foolish for politicians anywhere in the world to be acting against their own people for political gains because the people will eventually revolute, as we have seen in many parts of the world. In the face of domestic economic decline some politicians often try to deflect their shortcomings by starting a conflict / war abroad or seek foreign influence. This is evident by numerous recent foreign visits by former Defence Secretary and the current Secretary of State, drumming support in Europe, Asia, Australia, the Middle East etc. The main aim is not economic cooperation but plotting a plan to gang up against China. This did not work because those countries knew that they would be used as pawns in a chess game. I am afraid that Australia and India have fallen into the trap. Australia is an unusual large country geographically but with a small population of 25 million (about the population of a large Chinese city). It wants to represent on the world stage and has been participated in many wars by sending a small number of its soldiers. No one wants to invade Australia and New Zealand, and yet Australia wants to increase its military spending during a pandemic and economic recession. India was wealthier than China in 1950 because of its inheritance from Britain whereas China had been looted and bombed out. We can all see that India is less developed than China today, and that the gulf between rich and poor in India is wide. There are still many slums there. The governance and management of the Covid-19 pandemic is just as bad in India as in the USA. I would therefore conclude that the so-called democracy is just a political slogan to sway people's opinion.

👍🏼

Capitalism began as mercantilism that worked because with a monarchy there was central planning. Planning with product and planning with wages...

Good on Asia woo hoo

This demonstrates a country turning on itself ... practised on other countries and been rewarded thus .... now crafted for it's own population and same approach by allied nations - Incomprehensible !!!

Fun fact... Indonesia beat USA on nationalism. Last year Indonesia made a new law that only made in Indonesia cellular phone can be use in Indonesia. This is one ultra nationalism that Indonesia beat USA.

I wonder how this has contributed to the predicament.

But wasn't it China's ultra nationalist policies that led to its rise over the last twenty years? Yes, they do trade deals, but always with china first policies. lopsided trade imbalances, forcing companies to give up their trade secrets so they can have access to the broader customer base.. yeah, seems to be working out pretty good for them. And Norway and Sweeden and germany who's nationalist policies include a sovereign wealth fund for its citizens, manufacturing in house, etc. No the problem is that the Nationalist policies did not go far enough.

RCEP is not lead by China, it is actually lead by ASEAN

We aren’t economically nationalist at all. We outsource our jobs and cost cut at every turn

That won't use. A good part of the American economy belongs to the Gulf sheikhs and other rich international people. In such an economy, how can one speak of nationalism and seek the solutions to crises in it?

Professor, you got a new fan from China

Wolff is talking about economic nationalism as if it is a problem or threat. Maybe it is, to the US's capitalist economy. But would economic nationalism be a problem in the kind of socialist economy Wolff advocates?

YES, I noticed that big dealers on the boards of MuseumofModernArt, and THE FRICK!!! Contributed $90,000+ to Trumps campaign THIS TIME!!!! Damn!

Capatalism which can't fail isn't capatalism. It's a state controlled economy. And controlled by America's wealthy ruling class

ace

According to the international business community, the US is a bad investment. Late stage capitalism is upon us.

It's getting hotter here, uh oh.

America is showing clear signs of being in decline, with a political and economic system that is not effectively responding to the current and future challenges internationally or domestically. Some fundamental strategic changes will need to be made, to how America functions politically and economically and how it relates to the rest of the world, if it wants to remain an influential and relevant power. Business as usual is no longer an option, going forward.

Who controls the Republican and Democratic parties?

The truth is that in order for the USA to lead it must be willing to pay, in greater unemployment among blue collars and greater expenditure in NATO etc. Otherwise the so-called allies will not rely on the USA. Trump is right about it not being fair to the USA, but one should know the consequence in insisting on it being fair.

So, what? Should we have signed on to the Trans-Pacific Partnership now? Cuz that's essentially want this new trade deal is. Are we suddenly in favor of a new trade deal that undermines American wages and sends more jobs overseas? This message seems rather out of step with what has been your overall message over the years.

Culture in decline on repeat like a broken record.

Decadent, ancient Rome during its fall has nothing on the level of depravity and decadence in the USA. We could teach them a few things, I'm sure.

usa began as a sheltered workshop for slave plantation agriculture, evolved as a land and resource bandit conspiracy , and found itself suddenly the biggest bully on the world stage. not a good preparation for life in a thin envelope of air on a medium-sized rocky planet. reality may be too hard for usa. certainly there will be a period of education on survival in a finite space with unfriendly neighbors who can't be killed with impunity. usa constitution is dysfunctional. resulting culture may be terminal. failure to give these matters serious thought extremely dangerous. yet there is no discussion in public, just name-calling.

I wonder who will write "The Wealth of Capitalist" after Adam Smith wrote "The Wealth of Nations" 200 years ago.

more clear, impossible

time to bring back america moters--------------look it up

poor ol' america

I don't think Trump got all those votes legitimately.

The US politicians lack of foresight is accelerating the decline & downfall of the American empire. Nationalist policies are doomed to fail because 70% of the US GDP is consumer driven. China closed its borders to the world in the last century with disastrous consequences. As soon as China embraced globalization in the 1970 its economy grew at a rate of 10-15% for the next 50 years. The US should have learned from the Chinese experience and realize that globalisation is the way to go specially with a consumer driver Economy. The reason is simple; each country can produce goods or services more efficiently because it has more natural resources, more skilled labour, lower labour costs, access to capital, better infrastructure and proximity to large markets or a combination of the above.

Hate is what 45 sells. Easy sell to sooo many, that hate...when you've been raised that way. Love thy hate? why?

BS