Is the Age of Plenty Over?

Economist Bill White on the age of scarcity with higher interest rates, higher inflation, and the “guns and butter” problem. [Read Online]( [Global Macro Update] [Global Macro Update] Is the Age of Plenty Over? By Ed D'Agostino | August 2, 2024 [Ed D'Agostino] We have been talking about resiliency-driven inflation for the past several weeks. As the US and its Western allies realign supply chains to strengthen economic resiliency, the cost of certain goods and commodities will go up. I received a note from Bill White about this, which prompted the interview I am sharing with you today. Bill is a renowned Canadian economist and former chairman of the Economic and Development Review Committee at the OECD. He has served at the Bank of Canada and Bank of England, and he is a long-time favorite speaker at our Strategic Investment Conference. Bill and I share similar concerns about an extended era of both higher inflation and higher interest rates—perhaps not high from a long-term perspective, but certainly higher than we’ve grown accustomed to. Bill sees us moving from an age of plenty, which he pegs as roughly 1990 to 2020, to an age of scarcity. In our interview, he walks through the five key macroeconomic factors driving this shift. These are big-picture issues that virtually no one in Washington is discussing, and Bill proposes some solutions that are bound to be unpopular, including higher taxes. Nevertheless, these are critical conversations. As Bill puts it, “We're in a war to preserve our market-based, capitalist, democratic system in an environment that is going to be very, very difficult to navigate.” [ShareÂ]( In our interview, you will also hear about: - My dinner table discussion with the former mayor of Miami - How complex systems like the US economy unravel - Bill’s thoughts on the national debt crisis - How to navigate what Bill calls the “guns and butter” problem Watch my interview with Bill White by clicking the image above. A full transcript of our conversation is available [here](. [ShareÂ]( Thanks for reading and watching. [Ed D'Agostino] [Ed D'Agostino] Ed D'Agostino Publisher & COO Mauldin Economics Follow me on LinkedIn [here](. Suggested Reading... [Going, Not Gone](  [Every Dividend Investor Needs This in Their Portfolio]( Don't let friends miss this timely insight— share it with your network now. Share Your Thoughts on This Article [Post a Comment]( Keep up with Mauldin Economics on the go. Download the App [Get it on Google Play]( [Download on the App Store]( [ Did someone forward this letter to you? [Click here to get]( Global Macro Update in your inbox every Friday. [Read important disclosures here.]( YOUR USE OF THESE MATERIALS IS SUBJECT TO THE TERMS OF THESE DISCLOSURES. --------------------------------------------------------------- This email was sent as part of your subscription to Global Macro Update. [To update your email preferences click here.]( Mauldin Economics | 1417 Sadler Road, PMB 415 | Fernandina Beach, FL 32034 Copyright © 2024 Mauldin Economics. All Rights Reserved.