Thursday, September 19, 2024

Ray Dalio says the U.S. needs a strong leader of the middle and 'broad-based prosperity'

Sep 18, 2024

Ray Dalio, founder of Bridgewater Associates, explains that while the U.S. has pockets of exceptionalism, those elements only benefit a small sliver of the population.

Ray Dalio said the 2024 U.S. elections will likely be the most important of his lifetime and he thinks the country needs a "strong leader of the middle."

Speaking to CNBC's "Squawk Box Asia" on Thursday, the founder of Bridgewater Associates explained that the U.S. should aim to reach "broad-based prosperity" and the presidential election highlights challenges to society's ability to function smoothly.

"As far as the election goes, it's going to be the most consequential election of my lifetime because we now have irreconcilable differences between the two sides," he said.

"The first question we'll ask is: will we have an orderly transition of power? We have the question- the fact that it is possible — that election results may not be accepted — that's quite something."

On Wednesday, Dalio had named the elections as a major force shaping the global economy, calling it an "issue of internal order and disorder."

He told CNBC on Thursday that there's a larger problem with a "win-at-all-cost mentality," as it presents "challenges to being able to compromise and make decisions in a way that is conducive to our democracy working effectively."

Economic Progress and Broad-Based Prosperity: A Global Agenda

AI Overview provided:

Broad-based prosperity is a concept that describes an economy that

provides opportunities for all,
removes barriers to participation, and
allows people to take advantage of those opportunities.

It can also be defined as a region where residents have equal access to resources and pathways to success, and can live meaningful lives.

Broad prosperity is a key concept for policymakers, companies, and institutions because it helps identify opportunities and challenges in different areas.

It's important to consider the appropriate scale for a policy to achieve broad prosperity, which could be at the national, regional, municipal, or neighborhood level.

Broad prosperity encompasses more than just economic prosperity. It also includes other aspects that people value, such as:

The quality of the environment
The state of education
The labor market
Public health
Poverty
Security

Economic Progress and Broad-Based Prosperity:
A Global Agenda

Marcia Tal

CEO, Tal Solutions®, LLC | PositivityTech®: The Science of Transforming Negatives to Positives®

June 30, 2017
With all the arguing and polarization about globalization, it’s refreshing to read a positive, balanced and well-considered proposal in Martin Reeves’ and Johann Harnoss’ “An Agenda for the Future of Global Business.”

The authors detail a 7-step agenda and believe that business leaders need to “visibly embrace and take action on a new agenda to shape the future.”

After securing the prosperity of their own companies, CEO’s “must secure the conditions for sustained prosperity, which requires a more inclusive model for global economic integration and technological progress.”

This resonated with me as a business leader who built a global analytics function in over 30 countries and experienced several waves of globalization over two decades.

What is the shape of this new wave of globalization?
The authors cite Jeff Immelt, former CEO of GE from his 2016 New York University commencement speech, for what this new wave could look like:
“…globalization that is less centralized, more geographically differentiated, more digitally interconnected, more cognizant of social impact, and focused on building local capabilities rather than exploiting labor cost differentials.”

Rather than accessing foreign markets and creating a low cost global supply chain, this new model is less centralized and invests in local capabilities. In this new wave, global business and its leaders will be redefined by what it means to embrace this vision of global/local.
As the authors assert: “Global businesses must advance a new credible narrative for globalization, technology, and the role of corporations – and support it with purposeful action.”
Maybe it is hard to “imagine there’s no countries.”
Certainly, though, it is possible to imagine and work towards a new, more equitable, diverse, and sustainable global economy.

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