Patriotic Capitalism | Future Fears | Real Vision™ | Summary and Q&A

TL;DR

As global confidence declines, capitalism will become more nationalistic, leading to the rise of patriotic capitalism.

Key Insights

• 🥺 Declining global confidence is leading to a shift towards nationalistic capitalism.
• 😀 Transnational corporations will have to align with specific countries, facing consequences of their choices.
• 💐 Industrial policies are being implemented to control capital flows and investments.
• 🇪🇺 The decline in confidence started in the late 1990s with the rise of the European Union and the exporting of manufacturing.
• 📈 Trump's policies and the fracking industry are manifestations of the underlying trend of declining confidence.
• 😮 Fear of change and automation are significant factors contributing to the rise of patriotic capitalism.
• 😘 Despite low unemployment rates, there is a counterintuitive level of fear in the economy.

Transcript

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Questions & Answers

Q: What is patriotic capitalism?

Patriotic capitalism is a term used to describe the shift towards nationalistic capitalism in a declining global economy. As confidence declines, corporations will have to choose whether they align with specific countries, leading to the prioritization of national interests.

Q: How does industrial policy play a role in this shift?

Industrial policies are already being implemented by governments, controlling capital flows and investments. This is seen in examples like Saudi Arabia, where policymakers are framing both inward and outward investments. The United States may also adopt industrial policies in sectors related to security issues.

Q: When did confidence peak and why is it declining?

Confidence peaked in the late 1990s with the manifestation of the European Union, the euro, and the exporting of manufacturing from the United States. Since then, there has been a gradual decline in confidence as overconfidence is proven wrong over time.

Q: Is Trump a manifestation of this underlying trend?

Yes, Trump can be seen as a manifestation of the deeper underlying trend of declining confidence. His policies, such as anti-immigration measures and tariffs, are based on fear and a shift towards nationalism. Fracking and American energy self-sustainability also contributed to this trend.

Summary & Key Takeaways

• Global confidence is declining, leading to a shift towards nationalistic capitalism.

• Transnational corporations will have to choose which side they align with, facing consequences in the deteriorating economic climate.

• Governments are implementing industrial policies, controlling capital flows and investments.