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Losing Control: The Emerging Threats to Western Prosperity
A hard-hitting analysis of the future of the global economy and what it means for the Western way of life
As the economic giants of Asia and elsewhere have awakened, Western leaders have increasingly struggled to maintain economic stability. The international financial crisis that began in 2007 is but one result of the emerging nations’ increased gravitational pull. In this vividly written and compellingly argued book, Stephen D. King, the global chief economist at HSBC, one of the largest banking groups in the world, suggests that the decades ahead will see a major redistribution of wealth and power across the globe that will force consumers in the United States and Europe to stop living beyond their means. The tide of money washing in from emerging nations has already fuelled the recent property bubble in the West, while new patterns of trade have left the West increasingly dependent on risky financial services. Unless things change drastically, King argues, the increasing power of emerging markets, when coupled with poor internal regulation and an increasingly anachronistic system of global governance, will result in greater instability and income inequality, accompanied by the risk of a major dollar decline. And as Western populations age and emerging economies develop further, the social and political consequences may be alarming to citizens who have grown accustomed to living in prosperity.
As the economic giants of Asia and elsewhere have awakened, Western leaders have increasingly struggled to maintain economic stability. The international financial crisis that began in 2007 is but one result of the emerging nations’ increased gravitational pull. In this vividly written and compellingly argued book, Stephen D. King, the global chief economist at HSBC, one of the largest banking groups in the world, suggests that the decades ahead will see a major redistribution of wealth and power across the globe that will force consumers in the United States and Europe to stop living beyond their means. The tide of money washing in from emerging nations has already fuelled the recent property bubble in the West, while new patterns of trade have left the West increasingly dependent on risky financial services. Unless things change drastically, King argues, the increasing power of emerging markets, when coupled with poor internal regulation and an increasingly anachronistic system of global governance, will result in greater instability and income inequality, accompanied by the risk of a major dollar decline. And as Western populations age and emerging economies develop further, the social and political consequences may be alarming to citizens who have grown accustomed to living in prosperity.
- GenresEconomicsNonfiction
304 pages, Paperback
First published January 1, 2010
3 people are currently reading
91 people want to read
About the author
Stephen D. King
16 books12 followersStephen D. King is HSBC's group chief economist and the bank's global head of economics and asset allocation research.
He writes a weekly column for the London Independent and is a member of the European Central Bank Shadow Council and the Financial Times Economists' Forum.
He is a British national living in London.
He writes a weekly column for the London Independent and is a member of the European Central Bank Shadow Council and the Financial Times Economists' Forum.
He is a British national living in London.
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Displaying 1 - 9 of 9 reviews
August 14, 2013
Quite an interesting view of what's happening to global economy. Making any personal conclusions still requires considering more facts (not presented in a book), but overall author presents a good framework for judging economic and political events.
December 8, 2024
Overall, the book didn’t feel too out of date. Many of the policy problems are still relevant but if anything protectionist tendencies and the threats to Western prosperity have accelerated since the book was published in 2010.
November 13, 2024
For full disclosure, I only read this because i) it was lying around unclaimed in the office near the printer (fancy hard cover version at that) and ii) I didn't have anything else to read on me, was to take a very long flight the next day and I needed 2 more books to get to my Goodreads target for the year..
So the circumstances turned fortuitous because otherwise this isn't the genre that id usually pick. That said, it would've been a shame if I had missed this. The book does well on the golden rule that one should apply to all books with a highly technical subject matter - can a non expert understand and appreciate the points made throughout. Stephen King has written the book in a very clear, simple language without using too many technical jargons. That should help a lay reader get a very good grasp of this very interesting topic ie what's the future of the west.
The only negative point I would point out is that the book does gives across as very opinionated (Mr King might say "what else were you expecting mate? Im paid to give views.") and might have done well to factor in a very simple rule - things change and very quickly at that. In fact, I'll be very interested to read a follow up where he does a compare of where he thought we were headed vs where we have gotten to in the last 15 odd years since this book.
In my view there are many things that have happened that don't necessarily go with the book's conclusion.
- First. China and Chinese economy have gone significantly south. They've become more anxious wrt political criticism, real estate burst has left the economy struggling and an ageing population is now increasingly a factor against China and not for them as so much of this book argued. The fact that China is most likely over the population dividend hump without becoming a rich economy might be a significant factor in the world order.
- Second. India has come up in a massive way and while it'll struggle to become a replacement, it can easily be a China+1 wrt the west. However, given political winds in the country let's wait and watch if they somehow manage to get more like china with authoritarianism and fundamentalism or does it stay a vibrant democracy (my hope for the second) which succeeds with the "western" model.
- Third. The world has gone bonkers and there are multiple wars on along with serious potential for a bunch of new ones triggering. This potentially means that a whole lot of progress achieved by some of the EM economies may get set back and hand over the initiative back to the US.
Hence, look forward to a follow up to see his thoughts.
While I was very happy with this read and was on the verge of a 5 star, l have eventually gone with a 4 because, well, tbh any book about the economy etc probably doesn't deserve a 5. That said, very interesting and I'd recommend if you're in the mood for some real life understanding of various factors that are affecting the world.
So the circumstances turned fortuitous because otherwise this isn't the genre that id usually pick. That said, it would've been a shame if I had missed this. The book does well on the golden rule that one should apply to all books with a highly technical subject matter - can a non expert understand and appreciate the points made throughout. Stephen King has written the book in a very clear, simple language without using too many technical jargons. That should help a lay reader get a very good grasp of this very interesting topic ie what's the future of the west.
The only negative point I would point out is that the book does gives across as very opinionated (Mr King might say "what else were you expecting mate? Im paid to give views.") and might have done well to factor in a very simple rule - things change and very quickly at that. In fact, I'll be very interested to read a follow up where he does a compare of where he thought we were headed vs where we have gotten to in the last 15 odd years since this book.
In my view there are many things that have happened that don't necessarily go with the book's conclusion.
- First. China and Chinese economy have gone significantly south. They've become more anxious wrt political criticism, real estate burst has left the economy struggling and an ageing population is now increasingly a factor against China and not for them as so much of this book argued. The fact that China is most likely over the population dividend hump without becoming a rich economy might be a significant factor in the world order.
- Second. India has come up in a massive way and while it'll struggle to become a replacement, it can easily be a China+1 wrt the west. However, given political winds in the country let's wait and watch if they somehow manage to get more like china with authoritarianism and fundamentalism or does it stay a vibrant democracy (my hope for the second) which succeeds with the "western" model.
- Third. The world has gone bonkers and there are multiple wars on along with serious potential for a bunch of new ones triggering. This potentially means that a whole lot of progress achieved by some of the EM economies may get set back and hand over the initiative back to the US.
Hence, look forward to a follow up to see his thoughts.
While I was very happy with this read and was on the verge of a 5 star, l have eventually gone with a 4 because, well, tbh any book about the economy etc probably doesn't deserve a 5. That said, very interesting and I'd recommend if you're in the mood for some real life understanding of various factors that are affecting the world.
October 22, 2019
don't pick it up unless you have a degree in economics, or are willing to look things up while you read
December 13, 2010
Really good, thought provoking book. Maybe not suitable for the average layperson but anyone with an interest in the subject should consider it essential reading. Some of the metaphors used are also brilliant!
May 3, 2011
Economic book on how the decline of western economies may be inevitable and the impact of various responses. Well argued by one of my favourite economists.
Want to read
August 28, 2011Author writes occasionally in the FT.
July 14, 2014
i read this book to study economics and so many of my friends prefer this book. so i have intrust to read this book.
This entire review has been hidden because of spoilers.
April 5, 2016
A great book by Stephen King, again, offering an intuitive explanation for two key economic developments: globalisation and increasing inequality within nations.
Displaying 1 - 9 of 9 reviews