The host is Canadian but the first half of Zeihan’s presentation is about the whole world. Zeihan relies mostly on population.
Interesting negative comment about robots, ‘They do the job but don’t consume.’ Would it be the end of Keynesian economics and back to Say’s Law?
Macroeconomists over the last two centuries have often divided into two groups: those who argue that supply is the most important determinant of the size of the macroeconomy while demand just tags along, and those who argue that demand is the most important factor in the size of the macroeconomy while supply just tags along.
Seen from the point of view of the Science of Complexity and personal observation, the Economy is much more complex than either Keynes Law or Say’s Law. My take:
Like every complex system, the economy is an evolving learning landscape where each player has a goal and adapts to the changes of the landscape (the economy) as it evolves. The government has one set of goals, producers a different one, and consumers a third one and among each group there are personal preferences and resources.
In effect, all the players are influencing the Law of Supply and Demand with their own resources.
• Governments produce nothing but can print money. This money buy goods in the short term at the cost of inflation because no value has been added to the economy.
• Producers manipulate the Law of Supply and Demand with pricing strategies. Say’s Law says that production creates its own demand but that is not strictly true. Tesla is a good current example, while production was constrained Tesla increased prices to maximize their output. Once production exceeded demand Tesla lowered prices to sell all het can produce. In addition, Tesla adjusted prices to take advantage of the new EV incentives.
• Consumers are the most diverse group and respond to both government policy and corporate pricing strategies with whatever buying power they might have which is also quite a complex subject.
Each group affects how the other two groups behave as well as how other members of their own group behave.
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Zeihan on Canada - The Full Conversation
Sounds like the US is the economy to bet on…