After decades of believing they had a unique and lucrative relationship with the United States, nations all around the world are coming to the realization that their ties with the US were not as special as they thought. Trust in the US has collapsed, and leaders are struggling to recalibrate their approaches. Gillian Tett, a Financial Times commentator, describes the current White House strategy as “revenge politics and beggar-thy-neighbor” economics.
The 2008 global financial crisis exposed the flaws in the economic system based on finance rather than manufacturing. While billionaires thrived, ordinary people suffered from home loss and austerity policies. As countries face the need for recalibration, Australia’s response to the crisis was praised for its forward-thinking intervention and reliance on iron ore exports.
Critics have long pointed out the inequalities and environmental damage caused by the global neoliberal system, but efforts to devise a new model have been slow. With Donald Trump’s administration pushing for a reset of the global financial and trading system through tariffs and military power, policymakers and business leaders are struggling to adapt to this new paradigm.
Australia’s economic history reflects a shift from a colonial mindset to Keynesianism to a more deregulated approach. The country’s rich resources are still a strong point, but there is room for improvement in areas like education, research, and income equality. As nations continue to navigate the changing international landscape without the US as a manipulative parent figure, they must find new ways to collaborate and adapt to emerging economic realities.
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