Political Science

During the eurozone crisis of the 2010s, southern European countries like Greece and Spain often faced criticism from northern Europeans, because of their perceived economic 'mismanagement'.

In 2024 the tables have turned - with Greece, Portugal and Spain now growing faster than Germany, the traditional economic powerhouse. And with the Eurozone only recently exiting a shallow recession, the EU's economic recovery has been aided by the southern countries.

Professor of International and Public Affairs Mark Blyth delivered the keynote address at the 2024 Seafood Expo North America in Boston on March 10.

The federal government’s budget deficit has soared to $2 trillion— effectively double what it was a year ago. And rising interest rates have increased the cost of financing the nation’s ever-accumulating debt, which now stands at about $33.7 trillion.

But there is also concern on the left, where some worry that growing interest payments could squeeze out more productive spending and pose long-term risks to the economy.

“Serious deficit reduction, a bad idea a decade ago, is a good idea now,” wrote Krugman,the liberal economist and New York Times columnist, in a recent newsletter.

So, what does the man who wrote the book on the subject think? Has Blyth shifted his position? In a word, no.

The International Political Economy (IPE) Distinguished Scholar Award recognizes outstanding senior scholars whose influence and path-breaking intellectual work will continue to impact the international political economy field for years to come.

February has been punctuated by record shattering profit announcement, and its becoming increasingly obvious corporations are using emergencies — such as the pandemic, supply chain disruption, or gas shortages — as an excuse to raise gains.

Analysts are only just beginning to lay out the pattern, but in case you were wondering why stuff like peanut butter and cola got so expensive: it’s because big corporations are hiking prices by double-digit figures and making record profits, not because people are buying too much of it.

To those who actually buy stuff this may not seem like a groundbreaking insight, and yet for the past nine months, the European Central Bank (ECB), responsible for keeping prices level, has increased interest rates, making it even harder for people to buy things, while letting corporate profits — the main driver of inflation — off the hook.

This puts further pressure on disposable income, which despite massive government support schemes — estimated at €800bn in 2022 alone — fell by 2.9 percent last year; 6.9 percent in Greece and 3.1 percent in Germany, where it fell for the third year in a row.

The question is, why? Why do we suppress wages while letting let profits rip? To put it in historical perspective: in the 1970s, nearly 70 percent of economic output went to employees, with just over 20 percent going to profits. Now, labour’s share stands at 56 percent with a third going to profits.