The Headwinds and the economic system

I came across this graphic by Bruce Mehlman in ‘Thoughts from the frontline’ from Mauldin Economics. It looks at the change that was already evident before COVID-19 and the war in the Ukraine but have accelerated because of these events. The tailwinds for 30 years since the fall of the Berlin Wall are starting to slow/stop and it seems that there are now headwinds rising and reversing the process. The trust element in the global economy is probably at all time low and survey data between 1979 and 2021 saw that the military gain trust. All others—media, religion, courts, schools, labor, business, Congress—lost much and sometimes most of their credibility since then.

However in times crisis humanity can usually conjure up accelerating innovation and change: faster productivity, entrepreneurship, smarter healthcare, and a transition to next-generation energy sources.

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