Saturday, August 15, 2009

China, Hong Kong, Japan Have Turned

Almost all of Asia has turned the economic corner with positive economic growth for the second quarter of 2009. The numbers are surprisingly strong, in fact. The Asian pattern is typical of recoveries that used to take place in (formerly) capitalistic countries in the West. China has avoided putting any obstacles in the way of recovery and the stimulus package adopted in China was, in fact, stimulus -- unlike the American redistribution package that had little or no stimulus in it.

Obama economists, like Paul Krugman, had roundly criticized China for not doing redistribution schemes to get the economy going again. There is absolutely no scientific support for the idea that redistribution schemes promote economic recovery. Redistribution schemes are purely political actions rewarding friends and punishing enemies. The China plan emphasized infrastructure spending not redistribution schemes. It's effect was almost immediate and Asia is benefitting from an intelligent approach to economic calamity.

Meanwhile the US is busily engaged in debating the merits of another redistribution scheme and government takeover of more of the American economy. The health care debate is a tribute to how misguided American politicians have become. Almost every proposal of the Obama White House has the effect of reducing employment and slowing the economy -- health care "reform" is no exception. Nothing in the Obama thinking would lead any employer to hire any anyone. In fact, the entire Obama program is an attack on business and on entrepreneurs and actively discourages hiring employees.

Thank goodness for China and the rest of Asia. They know enough economics to adopt sound policies that will lead their countries to early recoveries from the current recession. The US and Western Europe will continue to stagnate unless they reverse their job-destruction policies.

A recent NY Times article correctly portrayed the growing pattern of the top American college graduates leaving the US to go to China to seek employment. That trend will continue. The brain drain is now reversing. More results of the Obama team's "change you can believe in."

1 comment:

Cville guy said...

I like your theme of the past few days of linking Obama's policies and their toxicity to employment. I do not hear that theme very often in other people's arguments. His policies are wrong on so many levels it has the perverse effect of diffusing the various arguments against them.