Davos and the melting world economy – Michael Roberts
“What did the WEF Risks Report conclude from its survey of Davos participants? ‘As we enter 2024, we highlight a predominantly negative outlook for the world over the next two years that is expected to worsen over the next decade. … The outlook is markedly more negative over the 10-year time horizon, with nearly two-thirds of respondents expecting a stormy or turbulent outlook.‘
“Not good for capital and even worse for working people.”
The Humiliation of Davos Man – WSJ
“As war spreads and the global economy slows, chances for progress on the Davos social agenda are fading. Topics like the energy transition and gender justice, however worthy and important, drop down the priority list when countries are waging or preparing for war. The number of desperate refugees, currently estimated at 114 million, inexorably grows. Violence against civilians accompanies the rising tide of war. Under these circumstances, human-rights groups and other social campaigners must focus on humanitarian crises rather than existing social problems.
“Given this background, the Davos hills are alive with the sounds of failure. Davos conversations that used to be about how to take advantage of the level global playing field that U.S. presidents and allies sought to build after World War II and 1990 have shifted. The question now is how companies, and countries, can manage the risks of a disrupted world order. How do you manage supply chains in an era of U.S.-China rivalry? How do you adjust to the effective closing of the Red Sea, and perhaps the Strait of Hormuz, by Iran and its proxies? How does your country manage its security policy in a world where U.S. power seems to be waning and the comfortable assumptions of the past no longer hold?”
“Since 2020, the richest five men in the world have doubled their fortunes. During the same period, almost five billion people globally have become poorer. Hardship and hunger are a daily reality for many people worldwide. At current rates, it will take 230 years to end poverty, but we could have our first trillionaire in 10 years. A huge concentration of global corporate and monopoly power is exacerbating inequality economy-wide.”
Oxfam Inequality Report Highlights Wealth Divide As Davos WEF Begins – Forbes
“Since 2020, billionaires’ wealth has increased three times faster than the rate of inflation, according to Oxfam. Meanwhile, the wages of nearly 800 million workers have failed to keep pace with inflation, meaning that these individuals have effectively collectively lost $1.5 trillion over the last two years.”
Bernie’s proposals for Wall Street reform:
- Break up too-big-to-fail banks and end the too-big-to-jail doctrine.
- Reinstate the Glass-Steagall Act.
- Cap interest rates and ATM fees and allow every post office to offer basic and affordable banking services.
- Audit the Federal Reserve and make it a more democratic institution so that it becomes responsive to the needs of ordinary Americans, not just the billionaires on Wall Street.
- Restrict rapid-fire financial speculation with a financial transactions tax.