Novara Media Downstream: Ex-World Bank Insider on Western Decline & the Chinese World Order w/ Branko Milanovic
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Nov 17, 2025 
Branko Milanovic, a former World Bank macroeconomist and expert on global inequality, dives into the shifting geopolitical landscape. He discusses how the rise of China compares to the Industrial Revolution, the implications of the new elite class, and the declining social mobility in the West. Branko critiques neoliberal globalization and explores the potential for conflict between the US and China. He also touches on the factors behind the USSR's collapse and examines the economic forces driving Russia's pivot towards Asia.
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Prefer PPP For Welfare Comparisons
- Use PPP when comparing living standards because it measures welfare more accurately than market exchange rates.
- Consider both PPP and nominal GDP, but prefer PPP to assess what people actually consume and produce.
How New Elites Reduce Mobility
- Social mobility in the West has declined since the 1980s, driven by entrenched elites combining capital and high labor incomes.
- This homoploitic elite transmits advantages to children, reducing upward mobility.
Inequality Fueled The Pre-2008 Bubble
- Excess savings among the very rich can drive asset bubbles because their low propensity to consume seeks risky investments.
- Inequality therefore contributed to the pre-2008 financial bubble by creating demand for risky assets.
