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“When the world’s productive capacities exceed the buying power of the world’s consumers, every government wants to increase exports and discourage imports. That spells trade war.”
“The spread of digital technology comes at a cost: it exposes armies and societies to digital attack,” says The Economist, which thinks cyberspace must be treated as a theater of war.
Jagdish Bhagwati, professor of economics and law at Columbia, dispels five common myths about free trade such as, “Free trade may increase economic prosperity, but it is bad for the working class.”
“Just as healthy optimism can turn into irrational exuberance, a clear-eyed realism about the challenges facing the United States can gradually inflate a pessimism bubble,” says Ross Douthat today.
Just give money to the poor, says a new book by the same name. In it, three British professors say direct cash payments to the developing world’s poor will help economies to grow.
“What’s so bad about deflation?” asks Slate. “After all, it’s a pleasant surprise when prices of many items fall.” As it turns out, there is good deflation and bad deflation, but which is which?