Business
Recorded December 9, 2019 On the final episode of New Business Paradigms of 2019, Academy Chief of Staff Kristy Jansen and Academy President Rinaldo Brutoco discuss why the economy went sideways after a week of nonstop positive economic news. Rinaldo makes the comment that the fundamentals of the economy are wrong – much like air leaking from a tire that tears a bigger and bigger hole over time. We mourn for Paul Volcker who passed on December 8th, 2019, and discuss his contributions to monetary theory as the “father of the modern proactive Fed.” The U.S. has seen a lot, from civil wars to world wars to depressions… and over that time has solidified its place as a global leader. Environmental regulation has weakened, our democracy is under threat, and the Federal Reserve is also now being challenged by President Donald Trump’s constant attacks and ridicule. With all this, will the U.S. continue being the dominant influence in the global economy and monetary field? Are we now slipping in that role due to newly protectionist sentiments and lack coherent of leadership? Throughout his life, Volcker thought that America ought to have a leading role to play in influencing the world, but the current state of affairs seems likely to disappoint. You can read more on Volcker’s final warning here. Other topics include: how the US is killing the World Trade Organization (WTO) through calculated inaction; current economic indicators, with a focus on why the future is bleak for oil companies; and a discussion on political instability across the world. We wind down with a few positive notes - a study about the power of giving cash to the poor, why we should repeal the Jones Act, and the unofficial U.S. delegation (led by House Speaker Nancy Pelosi) for the COP25 summit in Madrid.