| Hello from London,
This has been an unusual week at The Economist. The week after our summer special issue appears is one of only two in the year—the other is at Christmas—when we don’t print a weekly edition. But in all other respects it is perfectly normal. I hope you’ve been enjoying the digital-only issue.
As luck would have it, the biggest news came after the weekly had gone to e-press. And—another way in which the week was all too normal—that news was provided by Donald Trump, in the shape of “reciprocal” tariffs to be imposed on dozens of America’s trading partners. Mr Trump regards his vandalistic trade policy as a great success; but as we wrote in a leader, it will prove costly to America and the rest of the world. Those costs are already beginning to show: the slowdown in jobs growth last month might, for example, reflect uncertainty over trade policy. Businesses are running out of ways to work around Mr Trump’s tariffs.
Slapping tariffs on all and sundry has not left Mr Trump without friends abroad. This weekend we’ve been reporting on two of them. One is Nayib Bukele, the president of El Salvador (which is privileged by a mere 10% tariff, at the bottom of the new Trumpian scale). The country’s legislature, controlled by Mr Bukele’s party, has just swept away presidential term limits, clearing the path for the popular but increasingly dictatorial 44-year-old to rule for life.
The other is Asim Munir, the powerful head of Pakistan’s army. The field marshal has been cosying up to Mr Trump, after a period of sour relations between Pakistan and America. (Whether that has helped secure a lower tariff rate, 19%, than India’s 25%, who knows?) Some believe Field Marshal Munir hankers after the presidency of his country; others think the current set-up, with a civilian government supported by the army, suits him just fine.
Apart from those new stories, I also recommend our analysis of McKinsey, the most illustrious of management-consulting firms. After years of rapid growth, McKinsey is stalling. Can it rejuvenate itself, perhaps with a dose of its own advice?
McKinsey sees the artificial-intelligence revolution as an opportunity; we think it may equally be a threat. Which brings me to the questions I put to you last week: will AI bring explosive economic growth, and will it improve or worsen your own circumstances? Thank you for all your replies. The Rev Jasper Kenter was among several who asked what the point of explosive growth would be: “Would 20-30% of growth in consumer goods improve wellbeing?...Unless steered in a purposeful way to serve society as a whole”, an AI-fuelled economy “will just increase inequality and reduce social wellbeing.” Rising inequality was a concern of many of you, including Tom Hauwiller. Those left behind, Tom wrote, “may seek to change the economic hierarchy”. That resentment, currently directed at migrants, fuels the MAGA movement, “but they will eventually come around to blaming tech.”
This week’s question is (I hope) a much simpler one. Suppose that you can take just one book on holiday, and it has to be a biography. Whose would it be? Adam Roberts, back from his own holiday, will be here next week to sift through your replies. You can email us here: economisttoday@economist.com. |
