Trade Wars Are Class Wars
by Matthew C. Klein, Michael Pettis · first published 2020
75% recommend25% neutral
Why HN recommends it
Argues that trade imbalances stem from rising inequality and wage stagnation, linking macroeconomics to politics; readers cite its clear, evidence-based challenge to the free-trade consensus.
Summarised by Claude from recommending comments
A provocative look at how today’s trade conflicts are caused by governments promoting the interests of elites at the expense of workers\ \ Trade disputes are usually understood as conflicts between countries with competing national interests, but as Matthew C. Klein and Michael Pettis show in this book, they are often the unexpected result of domestic political choices to serve the interests of the rich at the expense of workers and ordinary retirees.\ \ Klein and Pettis trace the origins of today’s trade wars to decisions made by politicians and business leaders in China, Europe, and
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…account, you win big. If you have a job building shit, you lose big. If you have a job building tradeable shit and a low net worth, may god have mercy on your soul. If you want the full economist version, "Trade Wars are Class Wars" by Klein and Pettis
on “Apple to increase spend with Broadcom to produce billions more U.S. chips” ↗Here's a few: * Matthew Klein & Michael Pettis - Trade Wars Are Class Wars * Bruno Latour - We Have Never Been Modern * Thomas Kuhn - The Structure of Scientific Revolutions (had never read it before, probably book of the year for me) and of course, Matt Levine's Money Stuff,…
on “Ask HN: What is the best thing you read in 2022?” ↗And for a deeper understanding see and lucid stlye: Trade Wars are Class Wars: How Rising Inequality Distorts the Global Economy and Threatens International Peace by Matthew C. Klein and Michael Pettis https://yalebooks.yale.edu/book/9780300261448/trade-wars-are...
on “Why inequality is growing in the US and around the world (Jan 2023)” ↗…what would happen with open capital accounts. Every time he got trotted out to rationalize the policies that deindustrialized the United States he must have been spinning in his grave. For more, read "Trade Wars are Class Wars" by Klein and Pettis. The thesis is in the title and the case is convincing.
on “The Eyepopping Factory Construction Boom in the US” ↗Book recommendation: "Trade Wars are Class Wars" by Michael Pettis. If you don't buy the apologetics that permeate the popular economics sphere but still want an expert to walk you through the details, this is your book.
For anyone who wants to understand the macroeconomics behind why the US Economy seems to hate export industries lately, I highly recommend the book "Trade Wars are Class Wars" by Michael Pettis.
on “The man who bought Pine Bluff, Arkansas (2022)” ↗…their assets, and the costs accrued to labor, who saw stagnant wages for decades. If you want the macroeconomics assessed in detail and the usual apologetics evaluated against evidence, I refer you to "Trade Wars are Class Wars" by Klein and Pettis.
on “996 working hour system” ↗…to address this problem (tax and spend vs trickle down) but the experiment has been run and they didn't deliver. If you want the more fleshed-out argument backed by data and an actual economist, read "Trade Wars are Class Wars" by Michael Pettis. Notably, solving this problem isn't as simple as returning to mercantilism: China is the mercantilist inverse of the neoliberal USA in this drama, but they have a different set of…
on “I think Yann Lecun was right about LLMs (but perhaps only by accident)” ↗Yes! "Trade Wars are Class Wars" by Klein & Pettis is the book to read if you want to hear actual economists with actual data talk about this.
on “US Administration announces 34% tariffs on China, 20% on EU” ↗Sure, decades of research by think-tanks hell-bent on pumping the assets of their sponsors at any cost to others. "Trade Wars are Class Wars" by Klein and Pettis is a good counterpoint.
on “America is getting an AI gold rush instead of a factory boom” ↗…defense attorneys when we have prosecutors" level of madness. If anyone is looking for an expert opinion that breaks with the "free trade is good for everyone all of the time lah dee dah" consensus, Trade Wars are Class Wars by Klein & Pettis is a good read.
on “How elites could shape mass preferences as AI reduces persuasion costs” ↗…door slammed in their face are no longer convinced that the door is their path to prosperity and now they want to tear the whole thing down. If you want to hear an actual economist talk about this, see "Trade Wars are Class Wars" by Klein and Pettis.
on “Thomas Piketty: 'The reality is the US is losing control of the world'” ↗…is that this happened to the Spanish, the Dutch, the English, and by the 1960s Triffin could see that it would happen to the US as well. If you want details from an economist who does his homework, "Trade Wars are Class Wars" by Klein and Pettis.
on “Previewing GPT‑5.6 Sol: a next-generation model” ↗…pay with things we make, our economy employs people. If we pay with things we own, the jobs disappear while stocks/bonds/real estate soar. If you want the whole story from an actual economist, read "Trade Wars are Class Wars" by Klein and Pettis.
on “Netherlands pulls gold out of the US” ↗This is taken from the book which the author is here a co-author of: Trade wars are class wars. See: https://phenomenalworld.org/reviews/trade-wars https://phenomenalworld.org/interviews/trade-wars-are-class-... Phenomenal World is also a fantastic publication, and I highly recommend it in…
on “Global capital is the tail that wags the U.S. economic dog” ↗