Trade Wars Are Class Wars by Matthew C. Klein and Michael Pettis

Trade Wars Are Class Wars by Matthew C. Klein and Michael Pettis is a compelling analysis of how global trade imbalances are not merely the result of disputes between nations, but reflections of deep inequalities within them. The book reframes the conversation about trade wars, arguing that domestic policies favoring elites over workers fuel economic instability and international tensions. Synopsis Klein and Pettis explore how unequal distribution of income and wealth inside major economies like the United States, China, and Germany leads to distorted trade flows, debt crises, and recurring financial instability. They demonstrate that trade conflicts often emerge when countries with surplus savings clash with those running deficits, creating systemic vulnerabilities. Instead of seeing trade wars as nation-versus-nation battles, the authors reveal them as struggles between economic classes across borders. Key Features & Themes

• Class and Inequality: Shows how trade imbalances reflect internal divisions between elites and workers.
• Global Imbalances: Explains the roots of persistent surpluses in China and Germany versus U.S. deficits.
• Economic Instability: Links inequality and trade surpluses to financial crises and rising debt.
• Policy Failures: Critiques governments for prioritizing capital interests over sustainable, broad-based growth.
• Reframed Perspective: Moves beyond traditional trade-war narratives to highlight systemic inequality.

Why Read It?

• Offers a fresh, insightful framework for understanding global trade tensions.
• Connects personal economic struggles to broader international financial dynamics.
• Challenges conventional wisdom by showing that the real battle is within societies, not just between nations.
• Essential for policymakers, economists, and anyone seeking to grasp the deeper forces behind globalization and economic conflict.

Trade Wars Are Class Wars is a thought-provoking and timely book that uncovers the hidden drivers of global economic strife, showing that lasting stability requires addressing inequality at home as much as abroad.