Five Takeaways: The working class bears the hurt: Working class incomes have stagnated in the U.S. and other countries, pitting worker against worker – as elites have seen their incomes and wealth increase. Summarizing my thoughts/takeaways from the book: The authors put forth a very important thesis: trade surpluses are not some grand accomplishment by a country making itself critical to the world economy, but rather the result of austerity measures that strip workers of their purchasing power. This might be true, but it is also true that at the same time, the small percent of the very wealthy are learning ways in which they can secure more and more of the common person's wealth, and policies are helping the wealthy succeed. “Trade Wars are Class Wars is a must-read from two of the most astute commentators on the global economy. The basic point is that the major trade imbalances in the world over the last four decades have been driven by the suppression of wage growth, with … More in 2020. What listeners say about Trade Wars Are Class Wars. The book has been added to my Book Library.Authors Matthew C. Klein and Michael Pettis explore how our economic linkages have both benefits, and an ability to transmit problems from one society to another. The book is a terrific survey of the forces behind today’s global trade tensions and imbalances – even if the authors ultimately fall short of defining an alternative system. He has previously written for the Financial Times, Bloomberg View, and the Economist, and was once an Investment Associate at Bridgewater Associates. Current account surpluses and other economically competitive policies are beneficial to governments, but they often come at the cost of a reduction in living standards for the domestic population. Timely and well-supported, reaching a conclusion I have been grappling with in examining income inequality (and its impact on domestic consumption - the key driver of a market economy). Matthew Klein is the Economics Commentator at Barron's and the co-author of "Trade Wars Are Class Wars: How Rising Inequality Distorts the Global Economy and Threatens International Peace." Now more than ever, prediction is a mug’s game. It offers an extremely clear and accessible description of how the modern world economy works, focusing on how conditions within countries--most notably the ongoing struggles between workers and owners--shape trade and financial flows between countries. In terms of difficulty for the laymen, it lies somewhere between a book digestible enough for someone who doesn't remember their high school economics and an academic treatise for the economics PhD. “ Trade Wars are Class Wars is a must-read from two of the most astute commentators on the global economy. Read "Trade Wars Are Class Wars How Rising Inequality Distorts the Global Economy and Threatens International Peace" by Matthew C. Klein available from Rakuten Kobo. What an excellent overview of State current account balances and how this is deeply intertwined with the question of inequality. by Matthew C. Klein & Michael Pettis @M_C_Klein | @michaelxpettis . Trade Wars Are Class Wars by Michael Pettis and Matthew Klein has a straightforward thesis: “rising inequality within countries heightens trade conflicts between them” or, to be more explicit: Trade war is often presented as a war between countries. “The authors weave a complex tapestry of monetary, fiscal and social policies through history and offer opinions about what went right and what went wrong . If you read enough debates about the poor pay practices of various big box retailers, a simple question eventually comes up. It can be confusing to think about because we all know that even some poor people in America today are able to eat more diverse foods than what was available to even the richest kings of the past. Very interesting read. For all of the hollowing out of the capacity of the current administration in the past four years, for all of its missteps, blatant corruption, and pie in the sky plans, it shows only the dollar is still almighty if Chinese banks must comply. Subscribe to hear when New Releases or Catalogs are ready! The second, personified currently by the claims of Donald Trump, is that trade is a war of country vs country that governments should fight to win, and that currently China is "eating our lunch.". ‎ A provocative look at how today's trade conflicts are caused by governments promoting the interests of elites at the expense of workers. The authors explain how capital flows wreak havoc all over the world. I still don’t know if I agree with or understand all of the underlying assumptions of th. Pretty different view of macroec. Rising inequality within countries heightens trade conflicts between them: Klein and co-author Michael Pettis found that trade wars break out as elites exploit workers to promote exports and build wealth.