The future and whom it belongs to
Marin Wolf is one of the very best journalist in the world writing about economic topics. Whether it is him being British, working when he was young in the World Bank under Robert McNamara, or combining right wing policies with the Keynesian approach, Wolf has managed to develop a set of original views on the post-2008 world economy and is deservedly called “the most widely trusted pundit”.
In his recent article for the Financial Times, where he works, Martin Wolfs argues against expectations of China’s continuous rapid growth and directs our attention to rising India. China cannot invest more as its level of investment has reached 44% of its GDP. If investment is constrained then maybe it is possible to enlarge exports? We all know that it is rather unlikely. Add to that a shrinking pool of available workers, rising wages, looming real estate bubble, etc. and you would indeed think twice before betting on China. India is much poorer than China, therefore its room for growth is still huge. It is unlimited number of young workers, bank debt penetration is negligible, and people are eager to learn and find new jobs.
The future may be rosy for the US economy too as artificial intelligence and robotization make novel sources of growth on which American companies may capitalize. More about Martin Wolf’s ideas may be read here.