Globalization and Quantitative Easing

Gargantuan efforts in economics, the result of government action from Bretton Woods and the WTO to tariffs and sanctions on Russia, have led to a sort of hybrid globalized protectionist economy in the current administration. What is needed in the upcoming term is the development of sound fiscal policy where the money supply is increased and non-tariff barriers and quotas are lifted and removed to help create multinational and transnational supply side economics. By increasing the supply of money, the cost benefit analysis of inflation versus growth comes into view. The social outcomes generated from increased quantitative easing will generate more industrial output and a Pareto efficient economic system. A zero sum game is achievable and likely if the players such as China, the EU, the UK, and the US all take efforts to foster fair trade with adequate wages and increased leisure time. More wages will correspond with more purchasing power and if globalization is the model, in the short term, economies will benefit in GDP and GNI from a supply side quantitative easing system.

The universe is not the economy and it is important to think of scale invariant systems, fundamental laws, and the economics of the everyday interaction in the market rather than the numbers associated with exchanges. Of course, the stock market is important, but we are better off today than fifty years ago. The internet, plane travel, cars, clothes, and consumer disposable and non-disposable goods have become more plentiful and relatively cheaper. Arbitrage has streamlined world economic systems and the problems of inflation can be countered with better wages and an increase in supply side quantitative easing. However critical the economy is, the focus needs to be on the scientific basis of research and development for new pharmaceuticals, stem cell therapies, gene alteration techniques, genetic modification, fusion energy, solar cells, EVs, better advanced materials, and increased agricultural output. The future is one where goods and services are produced with slightly higher cost, but with greater societal benefit.