Will the Shifting Economic Power Balance Topple Democracy?

[daftandbarmy]

We're hitting the democracy ditch, it seems...

"Since 1999, the global democracy indicator has been on a clear downward trajectory – presenting a very different picture from the averages depicted in the first graph above. The decline is driven predominantly by the rising economic power of non-democratic states like China. You may notice that the value in 2022 is roughly the same as in the late 1970s, when the world was in the midst of the Cold War. What is more worrisome is that a reversal of the downward trend is unlikely in the near future."

Will the Shifting Economic Power Balance Topple Democracy?

A view on where global democracy stands and where it’s headed in the new economic world order.

knowledge.insead.edu

 

[CBH99]

Just going off of the first blurb of the article, but if they removed the word 'economic' so it just read new world order it would fit right in line with the downward trajectory of democracy & the principals that democracies tend to stand for

Across western Democratic countries, there has been a subtle yet continual assault on democratic values and freedoms, sometimes from outside forces but often from within.

Unless western countries luck out with politicians that have their ear to the ground & are familiar with what's been happening, and have enough of a spine to stand up to it...I think that downward trajectory will slowly continue to head downwards.


As illegal immigration soars in the US & Europe, the economic status of the average person will continue to diminish - and it can only diminish so much until protests start, which inevitably turn violent when people's very livelihoods are at stake...

As those protests turn into riots, and riots both breed radicals & extremists as well as make for prime targets for those of similar mindset, chaos will continue to worsen.

Sometimes in waves, other times in what seems like never ending unrest - but governments will witness what's happening and inevitably give themselves the tools necessary to keep the peace & quell any uprisings.

Que the online censorship & active viewing of people's internet activity, censorship of the news to avoid adding fuel to the fire - and voila...


Even if a government has the best of intentions for its citizens, it will find itself arming itself with the same tools as an authoritarian state because they didn't get ahead of the massive economic shift the entire world is heading towards & starting to experience.


That's my 0.02

 

[Brad Sallows]

I'm not going to panic over a measurement that suggests we've managed to export prosperity to poor nations faster than we've managed to export our political systems. And a side effect of the latter is political instability leading to war, which is a good reason to not hurry.

 

[daftandbarmy]

Highest global debt levels ever... huzzah!

Global Debt Hits a New High of $315 Trillion​

The global debt stock hit a new record in the first quarter of 2024, increasing by $1.3 trillion in just three months.

This deluge in borrowing is a widespread trend across economies. While the U.S. and Japan were the largest contributors across advanced economies, China, India, and Mexico drove the largest share in emerging markets. Overall, the global debt-to-GDP ratio reached 333% as higher debt servicing costs and growing debt burdens continue piling up.

Since the onset of the pandemic, debt has surged by 21%, adding $54.1 trillion to the global total.

Today, the largest share of debt is held by non-financial corporations, at $94.1 trillion, while government borrowings follow closely behind at $91.4 trillion. Meanwhile, the financial sector holds $70.4 trillion in debt and households carry $59.1 trillion.

While stimulus measures fueled an influx of borrowing, it is leaving many economies in a more precarious state. In America, debt servicing costs are now more than defense spending, and the interest bill is set to rise further. Consequently, the government may need to raise taxes or cut spending in order to tackle its debt. So far, neither political party has a meaningful strategy that addresses the country’s fiscal sustainability.

For emerging markets, increasing debt burdens present greater risks. These risks are especially acute if a country experiences sluggish growth during a high rate environment. In this scenario, many emerging markets may need to restructure their debt as borrowing becomes unaffordable.

Even more concerningly, about a third of emerging markets have not recovered from the pandemic, with per capita income standing beneath levels seen in 2019. Over the quarter, debt held by emerging markets hit a record $105 trillion, climbing by $55 trillion over the last 10 years.

Global Debt Hits a New High of $315 Trillion

Global debt has soared to a new landmark, adding $1.3 trillion in debt in the first quarter of 2024 alone.

www.visualcapitalist.com

 

[CBH99]

Highest global debt levels ever... huzzah!

Global Debt Hits a New High of $315 Trillion​

Overall, the global debt-to-GDP ratio reached 333% as higher debt servicing costs and growing debt burdens continue piling up.

Since the onset of the pandemic, debt has surged by 21%, adding $54.1 trillion to the global total.

...

Consequently, the government may need to raise taxes or cut spending in order to tackle its debt. So far, neither political party has a meaningful strategy that addresses the country’s fiscal sustainability.

https://www.visualcapitalist.com/global-debt-hits-a-new-high-of-315-trillion/[/URLURLso

I have absolutely no formal educa...ment spending that's a drop in the bucket...)