«

»

Oct 01 2010

Optimist

First of all, here’s a great one paragraph description of the current state of the world economy-

Major advanced economies are still reeling from the effects of a burst housing bubble and the financial crisis that followed. Consumer spending is depressed, and firms see no point in expanding when they aren’t selling enough to use the capacity they have. The recession may be officially over, but unemployment is extremely high and shows no sign of returning to normal levels.

Here’s a prescription for at least partially addressing it, at least for the United States-

Taking On China

By PAUL KRUGMAN

Published: September 30, 2010

So what will the bill accomplish? It empowers U.S. officials to impose tariffs against Chinese exports subsidized by the artificially low renminbi, but it doesn’t require these officials to take action. And judging from past experience, U.S. officials will not, in fact, take action – they’ll continue to make excuses, to tout imaginary diplomatic progress, and, in general, to confirm China’s belief that they are paper tigers.

The Levin bill is, then, a signal at best – and it’s at least as much a shot across the bow of U.S. officials as it is a signal to the Chinese. But it’s a step in the right direction.

For the truth is that U.S. policy makers have been incredibly, infuriatingly passive in the face of China’s bad behavior – especially because taking on China is one of the few policy options for tackling unemployment available to the Obama administration, given Republican obstructionism on everything else. The Levin bill probably won’t change that passivity. But it will, at least, start to build a fire under policy makers, bringing us closer to the day when, at long last, they are ready to act.

Now it all seems a little Smoot Hawley to me but I’m really not equipped to judge, however the mere fact our “educated” elites are reduced to measures this drastic by the narrow mindedness of their thinking just flat out stuns me until I remember how inbred and ignorant they are.

I’m reminded of very serious solutions to problems like climate change where people are paying more and more attention to crackpot terraformers instead of simply inflating their tires and painting their roofs white, investing in Rail (diesel/electric is really efficient) and flying less, eating less meat (factory farming has an incredible carbon footprint) and other really common sense and easy to do things.

I’m not calling Krugman a crackpot terraformer, what I’m saying is that it’s a sorry state of affairs indeed that our only options are extreme.

1 ping

Comments have been disabled.