Interesting to hear that you believe Political influence may fade, is this outlook something you see from 2022 onwards? And is there more Fiscal involvement on cue next crisis?
A good friend pointed out to me - big government (however you wish to define it) works best in periods of spare capacity (government finds ways to utilise it) - while free markets work best in periods of scarcity (more efficient use). Looking at price rise in areas such as tech, shipping, food to name a few suggest we are moving to an age of scarcity. China has already made a move towards more free market pricing of capital at least. It would suggest less fiscal involvement in the next crisis - in fact the next crisis should be caused by reduced fiscal spening....
Would you think though that given the (additional) powers governments have assumed and used during the Covid pandemic, generally they will be slower than usual to wind back from a 'big government' mentality and position?
No idea when but politics is a funny thing. I thought Thatcher and Reagan ushered in free markets in 1980s, but when I went back and looked again, free market changes started in 1970s - but it took until the 1980s for the potential to be realised... the point being, is politics like markets have tipping points when everything changes - and I think it is something to think about and keep an eye on... and I sense a change afoot
Great stuff. Feedback on audio: I hear popping sounds when I listen to it on my headphones.
I think I broke my microphone... apologies. Will try I get a new one
Interesting to hear that you believe Political influence may fade, is this outlook something you see from 2022 onwards? And is there more Fiscal involvement on cue next crisis?
A good friend pointed out to me - big government (however you wish to define it) works best in periods of spare capacity (government finds ways to utilise it) - while free markets work best in periods of scarcity (more efficient use). Looking at price rise in areas such as tech, shipping, food to name a few suggest we are moving to an age of scarcity. China has already made a move towards more free market pricing of capital at least. It would suggest less fiscal involvement in the next crisis - in fact the next crisis should be caused by reduced fiscal spening....
Hi Russell,
Would you think though that given the (additional) powers governments have assumed and used during the Covid pandemic, generally they will be slower than usual to wind back from a 'big government' mentality and position?
No idea when but politics is a funny thing. I thought Thatcher and Reagan ushered in free markets in 1980s, but when I went back and looked again, free market changes started in 1970s - but it took until the 1980s for the potential to be realised... the point being, is politics like markets have tipping points when everything changes - and I think it is something to think about and keep an eye on... and I sense a change afoot