Get ready for the next wave of globalization. The emergence of the emerging markets is old news, of course: after all, Tom Friedman discovered that the world was flat back in 2005. But even as much of the developed world is struggling with weak consumer demand and stubbornly high levels of unemployment, the emerging market countries are writing a new chapter in the story of the global economy.
“The U.S… is kind of tapped out,” JetBlue founder and former CEO David Neeleman told Chrystia at this past week’s Google Zeitgeist conference. That’s why the serial entrepreneur decided to start his latest venture, Azul Airlines, in his native Brazil. Neeleman said air traffic in Brazil is expanding at three times the rate of GDP, nearly 27% a year, and that his airline is flying to cities that haven’t seen air service in years. Hear what he has to say about this and the JetBlue flight attendant who flew off the rails:
Earlier this week at the Google Zeitgeist conference, the company’s chairman and CEO Eric Schmidt said there was a divergence between his sector and the rest of the economy. While high-tech firms are currently receiving new investments, rolling out new products, and hiring new workers, the broader economy is at a standstill. “The damage that was done by the recession was much more severe than people acknowledge,” Schmidt said.
The pre-election economic treats that President Barack Obama handed out this week included several intended specifically for business: research and development tax credits, for instance, and the small-business tax breaks he is pushing to introduce in the face of Republican congressional opposition.
This piece first appeared in The Washington Post.
Forget the “Ground Zero mosque,” Michelle Obama’s Spanish holiday and even the oil spill in the Gulf of Mexico. When future historians look back to the summer of 2010, the event they are most likely to focus on is China’s emergence as the world’s second-largest economy.
In this past weekend’s New York Times, Chrystia channels Mikael Blomkvist, the muckracking protagonist in Steig Larsson’s Millenium trilogy, and argues that he would be horrified that the best writing on the financial crisis — Michael Lewis’ The Big Short and Andrew Ross Sorkin’s Too Big to Fail — has come from insiders with access:
I appeared on PBS’s Nightly Business Report yesterday to talk about a serious fault line that’s running through the U.S. economy: businesses have figured out how to thrive in a global economy while workers have been left behind. Unless American businesses can find a way to include the sagging middle class in their success, they will soon face a populist backlash which will make Barack Obama look like Milton Friedman. Below is the video and my full remarks: