Martin Wolf: Political Economy of Structural Adjustment (6/7)

The video discusses the relations between major world powers, focusing on the US and China as plutocracies. It highlights the lack of cooperation in international systems and the challenges of economic adjustments. The discussion includes the structural economic models of the US, China, and the Eurozone, emphasizing the difficulties in changing these systems and the potential outcomes.

What is the primary focus of the discussion in the introduction?

• The impact of technology on global power dynamics

• The influence of the media on international relations

• The similarities between the US and China as plutocracies

• The role of Europe in global politics

What is a key characteristic of the international system discussed in the second section?

• The impact of climate change on global politics

• The dominance of developing countries

• The influence of surplus countries and reserve currency issuers

• The role of international organizations

Why is economic adjustment challenging for deficit countries?

• They have to increase exports

• They have to increase their spending

• They need to cut spending relative to income

• They must adopt new technologies

What structural issue makes spending adjustments difficult for surplus countries like China?

• Political instability

• High levels of debt

• Systems generating structural surpluses

• Lack of natural resources

What is the potential outcome for the US if the plutocratic elite succeeds?

• Expansion of social welfare programs

• Strengthening of international alliances

• Elimination of the deficit

• Increased federal government spending

What is a significant challenge for changing China's economic system?

• Lack of skilled labor

• Environmental concerns

• Political opposition

• Deep structural model of export-led growth

What is a potential consequence for the Eurozone discussed in the final section?

• Strengthening of the Euro

• Breakup or surplus driven by Germany

• Expansion of the Eurozone

• Increased influence of the European Central Bank