BRICS countries now exceed the G7: US Economist
Prominent US economist Richard Wolff has cautioned that a major global economic transition is underway, noting that BRICS countries now account for 35% of global output, while the G7 countries collectively account for only 28%.
According to Wolff, India’s insistence on continuing to purchase Russian oil despite pressure from the US demonstrates how the balance of power is changing.
The United Nations claims that India is currently the world’s largest nation. He compared the United States’ directives to a mouse striking an elephant with its fist.
As the US debt hits $36 trillion, Wolff pointed out in a podcast that China has decreased its ownership of US Treasury securities, which might seriously threaten the US dollar.
He noted that if that pattern persists, the US could have to pay more for borrowing or reduce domestic spending, which would further erode its standing internationally.
The US tariffs, according to the economist, are a futile tactic that could strengthen ties between India and the other BRICS nations. He clarified, “What you’re doing is building the BRICS into an ever-bigger, more integrated, and prosperous economic alternative to the West.”
The Trump administration’s assertion that tariffs can boost American industry was criticized by Wolff. “No business that is currently producing something in Brazil, China, or India is going to decide to spend a fortune to move production back to the United States,” he stated.
He claims that US tariffs might keep American exporters out of foreign markets without generating new jobs at home.
Beginning on Wednesday, the Trump administration increased the duties on India by another 25%, increasing the total to 50%.
Any compromise that jeopardizes the interests of India’s small companies and farmers has been banned by Prime Minister Narendra Modi. India has described the US tariffs as “unjustified and unfair.”
On the sidelines of the Shanghai Cooperation Organization (SCO) Summit in Tianjin on Sunday, PM Modi and Chinese President Xi Jinping will meet bilaterally. PM Modi is making his first trip to China in seven years.