What we’re reading (2/6)
“Hydrogen-Truck Maker Nikola Nears Bankruptcy Filing” (Wall Street Journal). “Nikola, the much-hyped hydrogen-truck maker that was briefly valued more than Ford Motor, is nearing a bankruptcy filing, according to people familiar with the matter. Phoenix-based Nikola has been working with its law firm Pillsbury Winthrop Shaw Pittman to explore options that could include a sale or restructuring of the company in bankruptcy, the people said.”
“The End Of The Chinese Economic Miracle?” (American Enterprise Institute). “Even before the start of the latest round of the US-China trade war, the Chinese economy was in deep trouble. Now that another round of that trade war has started, it is difficult to see how China will extricate itself from its economic troubles anytime soon. A further slowing in the Chinese economy could have serious implications for the world economy in general and for China’s Asian trade partners in particular.”
“Have We Been Partying Like It’s 1999?” (Paul Krugman). “Back in 2000 the economist Robert Gordon argued that the IT revolution was far less significant than what he called the Second Industrial Revolution of the late 19th century, built around electricity, internal combustion engines, chemicals and — last but not least — indoor plumbing. (The great postwar boom was arguably about taking full advantage of this revolution.) So far the data have supported his skepticism. Still, the tech surge was real, and brought real benefits to the economy, adding perhaps 10 percent to real GDP. What it didn’t do was justify the high valuations temporarily placed on tech stocks.”
“Three Simple Principles Of Trade Policy” (Marginal Revolution). “A Tax on Imports is a Tax on Exports…Businesses are Consumers Too..Trade Imbalances Reflect Capital Flows[.]”
“Inside The Bust That Took Down Pavel Durov—And Upended Telegram” (Wired). “The Russian-born CEO styles himself as a free-speech crusader and a scourge of the surveillance state. Here’s the real story behind Pavel Durov’s arrest and what happened next.”
