Thank you for very insightful analysis. All your pieces is fantastic.
I have been working on an article on production of surgical equipment in Sialkot for the western marked. I have been thinking that the levels of healthcare we have in the north is possible because of globalization. With deglobalization the first sector the feel squeeze is healthcare. Its "crisis" in some parts of western healthcare (not compared too global south).
Healthcare is thought about as a service sector but its very resource intensive. "The health-care sector's share of the national footprint was highest for material extraction"
All this resources comes from the global south. Including child labour. One more example of the levels of healthcare in western countries made possible by exploitation. Conspicuous consumption is worse but healthcare has specific complications.
That’s very interesting, I had never thought about healthcare in that way, especially the “services sector” angle. It’d also be interesting to see how dependent healthcare is on petrochemicals and what the alternative for that is.
Fantastic piece. If I could add a request to you list it would be including the housing/real estate/land circuit of capital in your analysis of the world system. Thanks!
Good question, I’m no economist. Space/property as a “second circuit of capital” is attributed to Henri Lefebvre. I’m thinking also of Micheal Hudson’s work on finance where he refers to the FIRE sector (intertwining of finance, insurance, and real estate). With real estate property being the largest global asset class, mortgage back securities/derivatives the source of the ‘08 crash, and research that shows Pikkety’s inequality data can be heavily attributed to land ownership (see: Rethinking the Economics of Land and Housing, Ryan-Collins et al), such a heavy portion of energy use going to power buildings, and so much raw material going into development--it seems like a crucial component to integrate into any model of how the global economy works. I’m obviously not making it clear, but I appreciate how you are mapping these systems and how they interact with one another.
Hmm that's interesting I think I get the general picture. I think there's an interesting Marxist critique also of surplus capital being plowed into real estate (think ghost towers in China) rather than being reinvested into the economy because of chronic economic weakness & the reduced ability to squeeze surplus value conventionally.
Will think more about it -- thank you for your comments. Hope you will like the recent piece on oil!
Super article. The elephant in the room is the fact that capitalism is a zero sum game, and the death of the New Deal values of the mid-20th century has made this all the more lethal. We have backed ourselves into a corner by A) adopting the US$ as the global reserve currency, and B) by not eliminating rent seeking as the primary method of securing "profits". I believe a Bretton Woods 2.0 with Keynes' original plan firmly in place plus an updated anti rent seeking domestic economics of Henry George's vision would be the way to go. Make John Locke's ideas bear fruit, and coupled with true Ricardian free trade via Keyne's Bretton Woods. These two things would/could create a "grass is greener on the other side" type of synergy that could make the world give up its addiction to power via zero sum capitalism. Intellect alone won't do it, however. Law serves power. The change/transition has to be forced upon us by exogenous forces. This is where the ideas of Henryk Grossman fit in.
Zero sum capitalism's problems have only been solved by consolidating power, which is like a giant positive feedback loop. At some point private property will have to become more costly than its benefits. This is where the logic of zero sum will finally be seen as counter productive. Think of it as a carrying cost. Private property will be seen as a burden. Like hiking in the mountains while carrying too much from home. At a certain point, you either distribute evenly among the hikers, or you ditch the unnecessary junk and free yourself from the albatross.
This is where tech has the ability to set us free.
Thank you for very insightful analysis. All your pieces is fantastic.
I have been working on an article on production of surgical equipment in Sialkot for the western marked. I have been thinking that the levels of healthcare we have in the north is possible because of globalization. With deglobalization the first sector the feel squeeze is healthcare. Its "crisis" in some parts of western healthcare (not compared too global south).
https://www.theguardian.com/society/2022/dec/14/a-ticking-time-bomb-healthcare-under-threat-across-western-europe
Healthcare is thought about as a service sector but its very resource intensive. "The health-care sector's share of the national footprint was highest for material extraction"
https://www.thelancet.com/journals/lanplh/article/PIIS2542-5196(22)00244-3/fulltext
All this resources comes from the global south. Including child labour. One more example of the levels of healthcare in western countries made possible by exploitation. Conspicuous consumption is worse but healthcare has specific complications.
In degrowth movement they are talking about resources to healthcare but I am sorry to say that the needs is unlimited. The more we treat the more needs there is. https://tidsskriftet.no/en/2015/03/who-has-misled-trond-mohn
It is possible to gradually get better but with the cost of even more pollution such as PFAS an other endocrine disruptors. https://link.springer.com/article/10.1007/s00134-023-06994-0
I wold like to talk to you about my thoughts about globalization and healthcare. Is it possible?
That’s very interesting, I had never thought about healthcare in that way, especially the “services sector” angle. It’d also be interesting to see how dependent healthcare is on petrochemicals and what the alternative for that is.
Yes, happy to chat. You can email me on maa324@georgetown.edu
I have written an email from robert.pedersen2000@gmail.com
Fantastic piece. If I could add a request to you list it would be including the housing/real estate/land circuit of capital in your analysis of the world system. Thanks!
Thank you! What do you mean by those concepts?
Good question, I’m no economist. Space/property as a “second circuit of capital” is attributed to Henri Lefebvre. I’m thinking also of Micheal Hudson’s work on finance where he refers to the FIRE sector (intertwining of finance, insurance, and real estate). With real estate property being the largest global asset class, mortgage back securities/derivatives the source of the ‘08 crash, and research that shows Pikkety’s inequality data can be heavily attributed to land ownership (see: Rethinking the Economics of Land and Housing, Ryan-Collins et al), such a heavy portion of energy use going to power buildings, and so much raw material going into development--it seems like a crucial component to integrate into any model of how the global economy works. I’m obviously not making it clear, but I appreciate how you are mapping these systems and how they interact with one another.
Hmm that's interesting I think I get the general picture. I think there's an interesting Marxist critique also of surplus capital being plowed into real estate (think ghost towers in China) rather than being reinvested into the economy because of chronic economic weakness & the reduced ability to squeeze surplus value conventionally.
Will think more about it -- thank you for your comments. Hope you will like the recent piece on oil!
So well written and structured !! Would love to read more about dollar weaponisation in a piece.
Thank you! Will do soon!
Super article. The elephant in the room is the fact that capitalism is a zero sum game, and the death of the New Deal values of the mid-20th century has made this all the more lethal. We have backed ourselves into a corner by A) adopting the US$ as the global reserve currency, and B) by not eliminating rent seeking as the primary method of securing "profits". I believe a Bretton Woods 2.0 with Keynes' original plan firmly in place plus an updated anti rent seeking domestic economics of Henry George's vision would be the way to go. Make John Locke's ideas bear fruit, and coupled with true Ricardian free trade via Keyne's Bretton Woods. These two things would/could create a "grass is greener on the other side" type of synergy that could make the world give up its addiction to power via zero sum capitalism. Intellect alone won't do it, however. Law serves power. The change/transition has to be forced upon us by exogenous forces. This is where the ideas of Henryk Grossman fit in.
Zero sum capitalism's problems have only been solved by consolidating power, which is like a giant positive feedback loop. At some point private property will have to become more costly than its benefits. This is where the logic of zero sum will finally be seen as counter productive. Think of it as a carrying cost. Private property will be seen as a burden. Like hiking in the mountains while carrying too much from home. At a certain point, you either distribute evenly among the hikers, or you ditch the unnecessary junk and free yourself from the albatross.
This is where tech has the ability to set us free.