Mark Blyth is a political scientist from Scotland and a professor of international political economy at Brown University.
What influenced Mark early on? John Maynard Keynes was his foundation. He also was growing up through the permanent recessions of the 1980’s and learning first hand about pitfalls in the economy. He quickly saw how the macro economy was so much different than the micro and how studying the economy as a whole was more important than just looking at the individual.
Mark called the Donald Trump win for Presidency in June of 2016. Why? Trump was willing to acknowledge there was a problem. He was dramatically different and played to the individual rather than big business. In 2015 Wall Street bonuses were twice the amount of the total wages of people earning minimum wage. Since that 2015 statistic, the inequality has only gotten greater. Trump gave people hope that things can change – that he could change them.
What are some macro steps that can get the U.S. economy heading in the right direction today? Dissolve monopolies and raise corporate taxes creating long-term productivity gains. Because of tax ride-offs a monopolized economy has been created. The government has allowed and engineered large businesses to run America and it’s time to re-arrange the model. Another problem? Americans have become dependent on passive investing and don’t know what to do when volatility happens. They have become blind to risk, due to lack of volatility for the last 10 years. Michael and Mark end on the question: “Can the economy sustain the next 10 years like this?”
In this episode of Trend Following Radio:
Raising interest rates
General data protection regulation
Efficient market hypothesis