A piece of mine that was published a few months ago that might be of interest to some, especially recent political events in the US.
A …tacit assumption lurks behind calls for the U.S. president to consider how best America can stabilize the global system: that the United States not only wants to help stabilize the international economy but that it can do so. The dominant mode of rhetoric assumes that the key causal relationship runs from U.S. influence to possible solutions for the problems plaguing the global economy. However, there is another way to think about the evidence. What if the key causal relationship does not run from U.S. hegemonic influence to global economic problems, but the other way around? What if global economic problems are imposing ever greater limits on the influence of the United States, and indeed any other putative hegemon that might replace it?
Here, the diagnosis might be as follows—that the great age of economic cooperation of the post–World War II period is the product of a historically unique conjuncture of high growth rates, and of available forms of cooperation that offered readily achievable rewards. We have no warrant to believe that these will continue forever; indeed they might already be abating. Global economic growth may be sputtering as it reaches hard limits…
Furthermore, there is some reason from the work of Thomas Piketty and
others to think that the extraordinary growth rates of recent decades are a historical aberration from earlier times, and may not continue indefinitely into the future. Finally, the low hanging fruit of straightforward tariff reductions have mostly already been plucked. Future economic agreements will have to settle instead for more dubious gleanings from the higher and more inaccessible branches. In such a world, it is unlikely that the incoming U.S. president can do very much to solve global problems. Instead, his or her main task might be to adjust as best as possible to international economic difficulties. Aspiring hegemons will find it far easier to increase economic cooperation and secure global stability in a world where there is reasonable economic growth and cooperation than in a world of stagnant growth and few distributional benefits. We may be moving from the former world to the latter.
This is less an exercise in prediction than in stealing a method from Gene Wolfe (he mentions it in one of his collections; I can’t remember which) for writing science fiction stories and applying it to policy articles. Wolfe’s recommendation is to take the world, change just one important variable, and then see what happens. What I do in the piece is to take the existing elite consensus about trade, benign US hegemony etc, and change just one factor, assuming that economic stagnation acts upon US political ability and will rather than vice versa. The result may or may not be closer to the truth, but it does, I think, plausibly demonstrate the fragility of this consensus to changes in the underlying parameters.