Power, as well as price, matters in a well-run economy

JOE Biden may be a one-term president, but his administration has changed the global political economy in ways that will continue to resonate long after he is gone.

In particular, his trade policy put an end to the era of laissez-faire globalisation, which tended to favour the unfettered interests of the largest corporations and state actors, and ushered in a post-neoliberal era in which labour, natural resources and the market-distorting effects of concentrated power are once again major concerns for policymakers.

Critics like to portray this shift as some kind of wacky, woke deviation from economic norms. It is certainly a change from the trickle-down, market-knows-best approach of the last half century. But the Biden stance actually takes the US back to the first principles of the post-World War II period during which the Bretton Woods institutions were established.