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Was 1776 really such a good idea?

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The two most unpopular candidates in US presidential history face each other in the elections today. Perhaps Her Britannic Majesty could be persuaded to resume control of the colonies? There is nothing constructive to be said today on the political noise, so perhaps we should look to the challenges ahead.
  • Prejudice is one of the biggest threats to economic and social stability. Prejudice is on the rise. Declaring a group in society to be "second class" undermines their economic contribution – increasingly so in today's changing world. Politicians must tackle prejudice head-on; it is morally and economically the right thing to do.
  • Global trade patterns are changing. Lengthening supply chains and outsourcing are outdated as localized production reintroduces the imperial trade model, and technology means that trade in services is increasingly important. Politicians need to stop living the trade of the past, and embrace the trade of the future.
  • Jobs do not disappear; jobs become different. Politicians must tell people that if a robot takes their job, they must find something else to do (and help them with that). Technology does not cause deflation – technology changes relative prices, not inflation. Politicians challenging central bank independence at a time of quantitative policy is very dangerous.