Economics & Global Affairs

175 Items

Aerial view of Shanghai World Financial Center and Jin Mao Tower

Mgmoscatello/Wikimedia Commons

Analysis & Opinions - Foreign Affairs

Stop Obsessing About China

| Sep. 21, 2018

The United States is a deeply polarized nation, yet one view increasingly spans the partisan divide: the country is at imminent risk of being overtaken by China. Unless Washington does much more to counter the rise of its biggest rival, many argue, it may soon lose its status as the world’s leading power. According to this emerging consensus, decades of U.S. investment and diplomatic concessions have helped create a geopolitical monster. China now boasts the world’s largest economy and military, and it is using its growing might to set its own rules in East Asia, hollow out the U.S. economy, and undermine democracy around the globe. In response, many Democrats and Republicans agree, the United States must ramp up its military presence in Asia, slap tariffs on hundreds of billions of dollars of Chinese goods, and challenge China’s influence worldwide.

But this emerging consensus is wrong and the policy response misguided. China is not about to overtake the United States economically or militarily—quite to the contrary. By the most important measures of national wealth and power, China is struggling to keep up and will probably fall further behind in the coming decades. The United States is and will remain the world’s sole superpower for the foreseeable future, provided that it avoids overextending itself abroad or underinvesting at home.

The gas and diesel prices of the Chevron filling station outside of MIA on April 16, 2011.

Daniel Christensen

Analysis & Opinions - Bloomberg Opinion

Trump Has Options If Oil Market Panics About Iran

| May 10, 2018

Oil markets have so far reacted to President Donald Trump’s decision to withdraw from the 2015 Iran nuclear deal without either enthusiasm or panic — without even much apparent interest. There are many good reasons for this, but also many reasons to think oil markets’ complacency could change. Fortunately, the Obama-era sanctions that Trump has moved to reimpose have some lesser-known safety valves should oil markets later overheat as a result of the Iran decision.

This image made from undated video of a news bulletin aired by North Korea's KRT on Sept. 3, 2017, North Korea's leader Kim Jong Un holds the Presidium of the Political Bureau of the Central Committee.

KRT via AP Video

Analysis & Opinions - Bloomberg Opinion

Trump Can't Solve North Korea by Just Making a Deal

| Sep. 05, 2017

President Donald J. Trump’s tweet this weekend that the U.S. might terminate all trade with countries doing business with North Korea was widely derided on the grounds of realism. Given that 90 percent of North Korea’s trade is with China, the tweet was little more than a veiled threat to terminate all U.S. trade with Beijing, ending a bilateral trade relationship valued at $650 billion a year. It would, as many correctly pointed out, mean economic disaster for North Korea -- and also for the U.S.