The Morning News https://ift.tt/3eeewzi
"Trade wars are class wars" is the argument of Michael Pettis and Matthew Klein, interviewed here by Adam Tooze (Crashed).
Trade cost and trade conflict in the modern era don’t reflect differences in the cost of production; what they reflect is a difference in savings imbalances, primarily driven by the distortions in the distribution of income. We argue that the reason we have trade wars is because we have persistent imbalances, and the reason we have persistent trade imbalances is because around the world, income is distributed in such a way that workers and middle class households cannot consume enough of what they produce.
Read a transcript here.
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