Debt can generally only be good where you are investing in productive purposes which will return a higher rate of return than the cost of debt. USAs exceptional privilege gained via the fiat petrodollar distorts this somewhat but in the long term it still applies. Neoliberalism has decimated the US productive sector along with globalisation productive advantage has shifted to China. Underlying economics are values and ethics and strategy- under neoliberalism strategy was captured by corporate lobbyists whose primary aim is private profit. In contrast China sets the agenda for capital allocation based upon the objective of maximising the net competitiveness of China Inc. China has won the trade war and USA has responded by attacking Chinas energy sources and trading partners. But China argualy has a superior sense of purpose- in China rentseeking monopolies are stomped on and citizens know it- in USA rentseeking corporates set the agenda and citizens know it. The neolioberal greed is good narrative ignores that a nation is a community in competition with other communities- other nation states and a nation of self seeking individuals where there is little or no collective sense of duty purpose and identity is highly vulnerable to competing nations states where there is. USA has enjoyed a good run, dominating global institutions and protocols, collecting rent frtom all and sundry, but its own sense of unity, purpose and ethics have been eroded by that success and the growth of selfish individualism that neoliberalism codifies. Iran has lost thousands of citizens to the war and stands more united in its sense of unity and purpose- the threat of losing one airman sent the US political elite into a panic.
Debt can generally only be good where you are investing in productive purposes which will return a higher rate of return than the cost of debt.
USAs exceptional privilege gained via the fiat petrodollar distorts this somewhat but in the long term it still applies.
Neoliberalism has decimated the US productive sector along with globalisation productive advantage has shifted to China.
Underlying economics are values and ethics and strategy- under neoliberalism strategy was captured by corporate lobbyists whose primary aim is private profit.
In contrast China sets the agenda for capital allocation based upon the objective of maximising the net competitiveness of China Inc.
China has won the trade war and USA has responded by attacking Chinas energy sources and trading partners.
But China argualy has a superior sense of purpose- in China rentseeking monopolies are stomped on and citizens know it- in USA rentseeking corporates set the agenda and citizens know it.
The neolioberal greed is good narrative ignores that a nation is a community in competition with other communities- other nation states and a nation of self seeking individuals where there is little or no collective sense of duty purpose and identity is highly vulnerable to competing nations states where there is.
USA has enjoyed a good run, dominating global institutions and protocols, collecting rent frtom all and sundry, but its own sense of unity, purpose and ethics have been eroded by that success and the growth of selfish individualism that neoliberalism codifies.
Iran has lost thousands of citizens to the war and stands more united in its sense of unity and purpose- the threat of losing one airman sent the US political elite into a panic.