The west has lost its sense of unity and purpose. Why? Because the wealth it built has created a sense of entitlement and selfishness. This amoral materialist selfishness is codified in the neoliberal markets rule approach which has risen to dominate political and economic thought and action over the last 50 years. The neoliberal markets rule approach argues there is no such thing as 'society' (Thatcher) and that we must all be individuals acting out of self interest to maximise overall productivity. This has lead to much greater inequality and the decline of government involvement in the economy - what were formerly recognised as strategic assets, to be managed for the overall benefit of the nation have been transferred to private purely profit motivated hands. To given example, here in New Zealand power generation and distribution was privatised into the hands of four major generators. What they have done is to reduce investment in new power generation and raised prices to maximise profits. This imposes higher costs on all consumers and businesses- but its great for the shareholders of the power generators. Because the generators also own most of the retail market for electricity they are making huge profits and face no incentive to increase generation. There are many other examples of this failure of neoliberal 'trust in markets' and they have resulted in western productivity especially in manufacturing to decline significantly in comparison to China where a mixed model has been employed- where strategic elements in the productive economy are carefully managed and developed with the primary objective to make China as a whole more competitive against other competing economies. As a result China has won the trade war- it pays more for commodity inputs and sells manufactured goods for less than western manufacturers. The neoliberal mythology is now so deeply embedded in the western narrative the concept of a collective purpose and directed strategic economy approach has almost disappeared. Trumps 'reshoring' and tariffs are a belatedly effort to reverse this dangerous decline in western manufacturing competitiveness but at best only scratch the surface of the systemic changes needed. China now has a massive lead in productive efficiency. It is leading or close to leading most of the high tech areas crucial to the post industrial economy. Yet still most western economists remain blinded by their neoliberal narrative of free markets and less government are all you need. Sadly the neoliberal narrative is one that is fundamentally flawed and over simplifies what builds strong markets and strong economies. The truth is a combination of factors are involved including culture, government and market structures.
The west has lost its sense of unity and purpose.
Why?
Because the wealth it built has created a sense of entitlement and selfishness.
This amoral materialist selfishness is codified in the neoliberal markets rule approach which has risen to dominate political and economic thought and action over the last 50 years.
The neoliberal markets rule approach argues there is no such thing as 'society' (Thatcher) and that we must all be individuals acting out of self interest to maximise overall productivity.
This has lead to much greater inequality and the decline of government involvement in the economy - what were formerly recognised as strategic assets, to be managed for the overall benefit of the nation have been transferred to private purely profit motivated hands.
To given example, here in New Zealand power generation and distribution was privatised into the hands of four major generators. What they have done is to reduce investment in new power generation and raised prices to maximise profits. This imposes higher costs on all consumers and businesses- but its great for the shareholders of the power generators. Because the generators also own most of the retail market for electricity they are making huge profits and face no incentive to increase generation.
There are many other examples of this failure of neoliberal 'trust in markets' and they have resulted in western productivity especially in manufacturing to decline significantly in comparison to China where a mixed model has been employed- where strategic elements in the productive economy are carefully managed and developed with the primary objective to make China as a whole more competitive against other competing economies.
As a result China has won the trade war- it pays more for commodity inputs and sells manufactured goods for less than western manufacturers.
The neoliberal mythology is now so deeply embedded in the western narrative the concept of a collective purpose and directed strategic economy approach has almost disappeared.
Trumps 'reshoring' and tariffs are a belatedly effort to reverse this dangerous decline in western manufacturing competitiveness but at best only scratch the surface of the systemic changes needed.
China now has a massive lead in productive efficiency.
It is leading or close to leading most of the high tech areas crucial to the post industrial economy.
Yet still most western economists remain blinded by their neoliberal narrative of free markets and less government are all you need.
Sadly the neoliberal narrative is one that is fundamentally flawed and over simplifies what builds strong markets and strong economies.
The truth is a combination of factors are involved including culture, government and market structures.