How Europe, America and China Are Repositioning
This week, Noah Smith and Erik Torenberg explore global economic issues, including US-European relations influenced by defense commitments, the impact of Trump’s policies, China’s Belt and Road Initiative and its exclusion of India, the role of AI in economic growth, government spending’s effects on GDP, and briefly discuss Smith’s upcoming book, Weeb Economy, and Noah's trip to Japan.
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SEND US YOUR Q's FOR NOAH TO ANSWER ON AIR: Econ102@Turpentine.co
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FOLLOW ON X:
@noahpinion
@eriktorenberg
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RECOMMENDED IN THIS EPISODE:
Weeb Economy: https://bookplus.nikkei.com/atcl/catalog/25/03/02/01880/
I have written a book!: https://www.noahpinion.blog/p/i-have-written-a-book
Noahpinion: https://www.noahpinion.blog/
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TAKEAWAYS:
- U.S.-Europe Relations & Geopolitical Shifts: Examines the U.S. shift away from supporting Europe, debating whether it was exploited or harming its own interests, with Trump’s strength-focused foreign policy potentially pivoting toward Russia, risking economic and intelligence ties with Europe.
- China's Economic Strategy & Globalization: The Belt and Road Initiative has largely failed, with poorly executed projects and unsustainable debt burdens for recipient countries.
- India's Industrialization & Economic Future: India needs a major shift in labor dynamics, particularly increasing women's participation in factory work.
- AI, Economic Growth & the O-Ring Theory: AI’s impact on economic growth is debated—some expect 10% growth, while Noah sees 5% as more realistic.
- Japan’s Economy & Currency Strength: Japan should push for a new Plaza Accord with the U.S. to strengthen the yen.
- AI’s Impact on Jobs & Productivity: AI is unlikely to eliminate all jobs but will require major adjustments in industries and legal structures.