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COVID On Air #10: The Health Of Nations with Mark Blyth

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Summary

In Episode 10: The Health of Nations, our host, Josh Farden speaks with Mark Blyth, a William R. Rhodes '57 Professor of International Economics at the Watson Institute of International and Public Affairs at Brown University. Blyth and Josh dive into the past, present, and future economics of the world, with takeaways from COVID and the political events surrounding it.

First, Blyth discusses what happens when we give out stimulus payments. The wealthy are more likely to save the payments and not circulate it into the economy, while those in a lower income bracket, use the money towards basic needs like making car payments, grocery shopping, etc. Blyth suggests that it’s not ideal to have public and/or private debt growing in a country's economy because we become vulnerable to greater financial instability when future unexpected crises arise.

One of the most financially vulnerable countries is Italy, with a debt crisis that has the potential to wreak havoc on other countries' economic recoveries, including the United States. He then suggests that although Germany is doing well now, they may be headed for economic trouble if they don’t pivot into green energy. Blythe makes the same argument towards U.S. Republicans, who are currently putting tariffs on technology like solar power.

The discussion pivots to cryptocurrency and universal basic income (UBI). Blythe views bitcoin as “inherently suspicious” and describes it as a form of digital gambling. However, he understands that many view it as a replacement for buying into gold. Blythe suggests if we all had UBI, people would instead volunteer, however many positions would go unmet because some essential positions would be undesirable.

Lastly, Blythe and Josh discuss the troubling future of China and what the Biden administration can do to start making significant changes. Blythe ends on a cautiously optimistic note, stating that ultimately we’re turning a corner on climate change. The money will only be in renewable resources, and that will go hand-in-hand with capitalism.

Key Takeaways:

  • Blyth suggests the word “Stimulus” is dated when talking about injecting money into the economy during a pandemic or crisis. Stimulus suggests boosting the economy, and during a crisis it’s about keeping the economy afloat.

  • Italy may be one of the worse off countries after the pandemic. Blyth suggests this is mainly due to having one of the world’s oldest populations with significant public debt.

  • It’s unclear whether a “Boom time” may be on the horizon after things slow down from COVID, meaning there may be a burst of prosperity in the economy from selling goods and growing industries.

  • Germany’s biggest exports are: vehicles, machinery, chemical goods, electronic products, electrical equipment, pharmaceuticals, transport equipment, basic metals, food products, and rubber and plastics, according to Wikipedia.

  • In 2017, only 1,000 people owned over 40% of Bitcoin.

  • Blythe admits there is no silver bullet for the Biden administration to fix decades-long issues, but he does see promising possibilities if Biden’s plan includes taxing the largest companies comes to form.

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