the Economist recently interviewed Michael Spence (Professor of Economics, Stern School of Business, New York University, and Senior Fellow, the Hoover Institution, Stanford University), and I thought his comments about China, the U.S., and the growth dynamics between the developing countries and the developed countries were rather interesting.
He talks about economics without the politics. It’s almost “weird” to find this type of discussion in America nowadays. He said that China is laying the ground work for transitioning into a more advanced economy over the next decade. He also said that the developing countries will maintain their growth even if the developed countries continue to limp along; the developing economies are no longer as dependent on the developed countries as was a decade ago. Elsewhere, I’ve read him articulating the U.S. has been consuming more than it produces for about a decade now and the U.S. will have to settle into a lower consumption “norm” when it re-emerges.
Click the “play” button below (and it appears the Economist purposely made the embedded video tiny hoping you will click through to their web site.) Spence has many interesting views on many other topics too – here.
This video is good. As one can see, Prof. Spence is a guy who focuses on economics and reality – not on political ideology.
This report that he and others put out on the global growth is also worth a read.