There are many ways in which government policies decrease inequality. Unfortunately, for those who believe America’s skyrocketing inequality is not only bad but even dangerous for the country, government tax policies actually increase inequality.
While the administration slams Iran for its domestic repression, nothing is heard of the abuse that Saudi Arabia imposes on its subjects. Since MBS — Muhammad Bin Salman — became Crown Prince, any sign of dissent in the Kingdom and any sign of criticism that comes from anyone but the Crown Prince has been ruthlessly suppressed. So women who advocated for the right for women to drive — a right granted by MBS - were imprisoned. Religious scholars with opinions contrary to MBS’ coterie of clerics get similar treatment. Here is the story of a cleric who has been outside the Saudi religious establishment and the price he and his family is paying for that independence.
(My sources in the Kingdom conform the essential authenticity of this piece.)
Something is clearly wrong in the U.S. Whether the statistics deal with life expectancy, social mobility, income inequality or a host of other factors, the statistics show the same thing — the majority of Americans are getting left behind. The two questions that need to be asked are “why has this come about?” and "what is to be done about it?” This article does not try to answer the first question. Instead it suggests that the American elite — made up largely of corporate executives plus some retired politicians, for example, Bill Clinton — are attempting solutions to the second question that may provide some amelioration of the problem but simultaneously preserve their own position at the top of the hierarchy. Instead, the author argues, both the analysis of the problem and the creation of solutions belong squarely in the political arena. Of course, if you believe as I do that the political arena has largely been captured by the same elite, the author’s “solution” is not going to work.
Brendan Brown, PhD, is one of the world’s leading monetary theorists. He is senior fellow at the Hudson Institute and associate scholar at Mises Institute. He is a columnist for Nikkei Veritas and a frequent guest on Bloomberg TV and Radio. Brown is a monetary economist whose areas of special expertise include Austrian monetary tradition, European monetary integration, Japanese monetary issues, the global flow of capital and international financial history. He has developed techniques of market analysis during a long career in international financing including the role of chief economist at Mitsubishi (UFJJ) International Finance. He has published many books on international financial topics including most recently (2018) “The Case Against 2 per cent inflation” (Palgrave). He received a PhD from University of London and MBA from University of Chicago.
Dr. Brown has begun a new publication, "Monetary Scenarios,” the inaugural issue of which is below. To receive further mailings, contact him directly at email@example.com.
At his recent cabinet meeting, President Trump presented an entirely false account of the Soviet invasion of Afghanistan in 1979 — precisely the account being pushed by Vladimir Putin. It is an account which is false. It both justifies the Soviet invasion and misstates the effect of the Soviet defeat in Afghanistan on the collapse of the USSR. Where Trump got that interpretation and why he is offering a justification for the USSR invasion remains a mystery — along with so much else about him.
In recent years, foreign owned enterprises in China have been under increasing price pressures. For example, according to tradingeconomics.com, wages in manufacturing in China increased to 64,452 CNY/Year in 2017 from 24,192 CNY/Year in 2008. At current exchange rates, that is equivalent to $9,268.47/Year. Many companies have canvassed Southeast Asia for lower cost manufacturing countries. Some bailed out of China for Indonesia, Thailand, and Vietnam. Now, added pressure on companies in China has been added from the tariffs that President Trump imposed on Chinese manufacturing exports. Once again, fleeing China seems a good option. But no other country in the region (and probably the world) can offer the benefits of manufacturing in China. Here is one explanation, by a Chinese manufacturing sourcing company, as to why Vietnam, in fact, is not a good alternative to China.
In his role as military leader, Trump fails as he does as moral leader of the American people and, apparently, as leader of the non-military federal bureaucracy
The Trump-Bolton sanctions recently levied against Iran will not force Iran’s government to buckle under to U.S. wishes and end its ballistic missile program; its aggressive foreign policy; its support for Hezbollah and the Houthis; it’s flirtation with the Taliban or other U.S. goals. Instead it will find inventive ways to export some oil and acquire sanctioned goods and services.
Prime Minister Netanyahu has tied Israel to U.S. Republicans. That did not start with President Trump but has deepened under his Presidency. (In fact, Netanyahu made a very public show of supporting Mitt Romney in 2012.) Through his deep ties with President Trump, Netanyahu has achieved some of his major goals. The U.S. withdrawal from the nuclear deal with Iran has been a central goal for Netanyahu. Moving the U.S. Embassy to Jerusalem to legitimize his claim that the city was, in fact, Israel’s capital (and not the capital of Palestine) was another major goal. And America’s de facto approval of Israel’s occupation of the Palestinians has been another major accomplishment. All the while, this has frayed ties with more liberal American Jews who support the Democrats.
Now a new source of dismay with Israel has arisen for many American Jews. Netanyahu appears to support the right wing populist Hungarian leader, Victor Orban, against George Soros. Orban has been censured by the European Union for his anti-democratic policies. But certainly not by Prime Minister Netanyahu.
Miles Morland, the sage of contrary British thinkers, offers two contrary predictions — on the fate of the UK after BREXIT and of President Trump’s party in the U.S. Midterms. Whether his predictions turn out to be right or wrong, he is guaranteed to stimulate your thinking.
The Khashoggi murder is not the first of its kind. The late and little lamented Saddam Hussein killed a British journalist and escaped retaliation. But the more recent murder of Khashoggi is proving more difficult for the Saudis to lay to rest. Despite their public relations campaign, even President Trump now senses that the Saudis have lied. One thing for certain, this mess is not going away quickly.
The U.S. economy is barreling ahead. For now. But Trump's economic policies will prove to be anathema to U.S. stock prices. How deep will the fall be? Read on.
Yes, the stock market is at historic highs. Yes, the economy continues to grow robustly. Yes, employment is really low and wages are beginning to rise. But what else would you expect from the various stimulative policies adopted by President Trump. The massive tax cuts combined with increased federal spending have done wonders for all the indicators (including a massive increase in the annual federal budget deficit). But powerful costs follow as well. As interest rates rise, the burden of carrying increasing annual deficits of a trillion dollars becomes significant. Given the massive deficits, the feds will have less ammunition the next time the economy needs stimulating. Other challenges follow as well. Here are some of them.
African population growth continues at a startling pace. In 2017, Africa’s population was estimated at 1.3 billion people. By 2030 the number is estimated to grow to 1.7 billion. Nine out of the ten countries with the highest total fertility rate (TFR - the average number of babies a woman births over the course of her reproductive life) are in Africa. (The tenth is Afghanistan.) The average number of babies born to women in Niger, for example, is 7.3. The average number of babies born to women in Nigeria is 5.5.
A number of factor account for Africa’s rapid population growth. One is that African women report that they wish for larger families than women from any other continent. Another is the absence of modern contraception in certain countries. Below is a chart on the percentage of women using modern contraceptives, by country. Virtually all African countries are below the levels of the rest of the world.
Simultaneously, some of the world’s lowest total fertility rates are to be found in Europe. The average number of babies born to women in Italy is 1.3; in Germany, 1.5; in France, 1.9. Since the average has to be 2.1 babies per woman to maintain stable adult levels, these numbers will actually result in shrinking populations. But even where the population grows, the numbers for Europe are tiny. For example, Spain’s population is expected to grow from 46 million in 2015 to 48 million by 2050. In the same period, Tanzania’s population will grow from 48 million to 138 million.
It seems a sure bet that those 138 million will not find adequate employment opportunities or a level of well being at home they consider acceptable. Their answer seems obvious — head for those rich European countries whose population have grown only by minuscule amounts or even better, have actually shrunk over the previous decades.
The reality is that Europe faces yet another threatening challenge — from demography.
President Trump has expressed his willingness to meet without preconditions with President Rouhani of Iran. Immediately after, Secretary of State Pompeo listed preconditions: “If the Iranians demonstrate a commitment to make fundamental changes in how they treat their own people, reduce their malign behavior, can agree that it's worthwhile to enter into a nuclear agreement that actually prevents proliferation, then the president said he's prepared to sit down and have the conversation with them.” Obviously, Pompeo just killed off President Trump’s offer.
At about the same time, the rial-dollar exchange rate fell to over 100,000 as Iranians continued their rush to get out of their own currency. When I left Iran in September 1979, 70 rials would buy a dollar. (I urged my Iranian friends to convert whatever rials they had into dollars.)
The widespread protests in Iran at the end of 2017 and periodically in 2018 were put down relatively easily by the Iranian police without the help of the Iranian Revolutionary Guard Corps or the Basij (the Mobilization). The Basij, the organizing and arming of neighborhood men by their local mosques, was crucial for suppressing the 2009 uprising. The regime has committed major resources to professionalizing the police and training them in riot control. The implication is that the regime has not only the will but the means of putting down any protests that arise from the widespread economic discontent. A significant analysis of the Iranian police by Saeid Golkar can be read at
Below is a response to my recent piece on Iran from Howard Rotblat-Walker, a PhD in Sociology from the University of Chicago whose thesis research was done in the bazaars of the Iranian city of Yazd and who recently returned from a trip through that country.
The Kimchi Matters: Global Business and Local Politics in a Crisis Driven World,
co-authors Daniel Lefkovitz and Sam Wilkin, Chicago: Agate Press, 2003
The Eastern European Opportunity, A Complete Guide and Sourcebook,
co-author Dwight Semler, New York: John Wiley and Sons, 1992
Majestic Failure: The Fall of the Shah,
Chicago: The University of Chicago Press, 1991
Khomeini and the Islamic Republic of Iran,
co-author Daniel Brumberg, Cambridge: Harvard Middle East Papers, 1987
The Political Elite of Iran.
Princeton: Princeton University Press, 1976
"Are We Going to Miss Mubarak?" [PDF]
February 4, 2011
"Washington Risque de Regretter Le Depart d'Hosni Moubarak" [PDF]
February 2, 2011
"Washington Risque de Regretter Le Depart d'Hosni Moubarak" [PDF]
February 2, 2011
"Middle East and Africa - Regulation Will Influence the
Future of Banking" [PDF]
June 1, 2010
"The Iranian People Are Entitled to More Freedom" [PDF]
The Wall Street Journal
"Russian Ripples Hit U.S. Firms - Sharp Slowdown in Consumer
Spending Is Felt From Cigarettes to Copier" [PDF]
The Mind of a Mullah
June 17, 2009
Focus Trends (Dutch)
"Obama Is Jezus Christus" [PDF]
"Faculty Smackdown with Marvin Zonis: From HBS Dropout
to Iran, Nightline, and the GSB"
Part One [PDF]
Part Two [PDF]