Ep. 372: Branko Milanović on China’s Rise, the Shift to National Market Liberalism, and Inequality

Global economic power is undergoing a fundamental transformation as the neoliberal era gives way to "National Market Liberalism." This paradigm pairs domestic neoliberal policies, such as deregulation and tax reduction, with mercantilist international strategies where states actively leverage military and political power to secure markets and resources. China’s rise serves as the primary catalyst for this shift, challenging Western hegemony and forcing a reconfiguration of the global order. Within this system, a new elite class—termed "Homoplutia"—has emerged, characterized by individuals who simultaneously command high income from both capital and labor. This convergence, coupled with high inequality and limited social mobility, has fueled widespread youth disillusionment and political instability. As the world moves toward a polycentric configuration, these structural tensions are manifesting in increased geopolitical conflict and a retreat from the cosmopolitan ideals of the 1990s.