Metabolic rivalry - along both the energy and the information axes - is creating a more active role for politics in economics - it's one of the main reasons why the neoliberal era is ending.

The world is witnessing a profound shift from the neoliberal era to a new age of geoeconomics, where economic and financial policies are increasingly wielded as instruments of geopolitical power. Unlike the previous decades, which emphasized free markets and rational economic self-interest, today's governments prioritize their relative national standing over absolute economic gains. This change is driven by rising nationalist protectionism and strategic competition, most notably exemplified by the US-China trade war. Economic tools such as tariffs, industrial policies, and investment strategies are now deeply intertwined with military and technological considerations, blurring the lines between commerce and statecraft.

Geoeconomics, a concept combining economics and geopolitics, is gaining renewed attention in academia and policy circles. Institutions like the IMF and universities such as Johns Hopkins and Stanford are expanding research in this field, while companies are encouraged to appoint "chief geopolitics officers" to navigate the complex landscape where economic decisions are inseparable from political objectives. This approach reflects a broader intellectual shift away from the neoliberal faith in free trade and market efficiency toward a recognition that economic policies serve national power and security interests.

Historical parallels abound, with the current trend echoing earlier periods when nationalist and protectionist policies replaced globalist visions, such as the early 20th century and the post-World War II Keynesian era. The resurgence of industrial policy, especially in the US under Presidents Trump and Biden, underscores this shift. Countries are increasingly using economic statecraft to secure supply chains, technological dominance, and geopolitical influence, as seen in initiatives like China's Belt and Road and Europe's digital euro.

This new geoeconomic reality challenges the assumptions of traditional economics, demanding a more nuanced understanding of how politics shapes markets. As global power dynamics evolve, nations and businesses alike must adapt to a world where economic competition is inseparable from geopolitical rivalry, marking a decisive departure from the neoliberal order that dominated the late 20th century.