Big Picture Macro Replay: Globalization, Demographics, and Inflation

September 2, 2022 – For many decades, the global economy experienced a dramatic expansion in the working age population. One of the biggest impacts this had was to lower the cost of nearly every type of manufactured good, something we experienced for about 40 years from around 1980 up until 2020. Unfortunately, that multi-decade process of ever-increasing globalization aided by an ever-increasing expansion of new workers is now reversing. Today on Financial Sense Newshour, we are going to re-air probably one of the most important interviews we conducted on our weekday FS Insider podcast a few months back with Manoj Pradhan who, along with Charles Goodhart at the London School of Economics, wrote a must-read book in 2020 that we have cited many times on our show called The Great Demographic Reversal, which discusses the many implications of falling birthrates around the globe, not the least of which is a long-term increase in the rate of inflation. This book, and much of what we discuss in today’s interview, is part of why we’ve been consistently warning on Financial Sense Newshour since 2020 to prepare for higher inflation for many years to come, if not for the remainder of this decade.

If you haven’t already read their book, we would certainly encourage you to listen to many of the very compelling arguments that Manoj makes in today’s show, some of which are quite shocking when you consider the numbers he cites. As always, if you’d like to hear more of these types of interviews we offer on FS Insider during the week, covering all aspects of the markets and economy, as well as long-term macro trends, click here to Subscribe.

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