08 Nov 11
Impressive criticism coming from someone in a country with a GDP per capita less than Belarus.
Of course the welfare system is not the problem - though I agree retirement ages should be increased. The problem is that during the 90s boom many governments reduced taxes when they should have increased them, allowing them to rapidly pay off debt and giving them plenty of breathing space for the inevitable slowdown.
08 Nov 11
Originally posted by KazetNagorraWhile I agree partially with that assessment, I do think that both reasons (tax cuts and out of control welfare spending) combined to cause the problem.
Impressive criticism coming from someone in a country with a GDP per capita less than Belarus.
Of course the welfare system is not the problem - though I agree retirement ages should be increased. The problem is that during the 90s boom many governments reduced taxes when they should have increased them, allowing them to rapidly pay off debt and giving them plenty of breathing space for the inevitable slowdown.
08 Nov 11
Originally posted by EladarChina sacrifices the quality of life of its own people for the purpose of accumulating economic leverage over other countries. That doesn't strike me as "right" even if it is effective.
It seems to me that China is the country everyone is looking to for financial help. Evidently there's more to financial security than per capita GDP. There's something that China is doing right that we in the West are doing wrong.
08 Nov 11
Originally posted by sh76Perhaps China goes to an extreme on quality of life, but I think it does show that no country is rich enough to spend on social programs like we are spending on them today.
China sacrifices the quality of life of its own people for the purpose of accumulating economic leverage over other countries. That doesn't strike me as "right" even if it is effective.
08 Nov 11
Originally posted by EladarYes they are. The problem is that rich people have the government working for them intentionally trying to starve the economy of funds.
Perhaps China goes to an extreme on quality of life, but I think it does show that no country is rich enough to spend on social programs like we are spending on them today.
08 Nov 11
Originally posted by EladarMy criticism of China is not so much lack of government spending but that they artificially depress their own currency, thereby reducing the purchasing power of their people. Because of that, the people don't have nearly the purchasing power they deserve based on their output.
Perhaps China goes to an extreme on quality of life, but I think it does show that no country is rich enough to spend on social programs like we are spending on them today.
08 Nov 11
Originally posted by EladarInterestingly, China's government runs deficits too; as a % of GDP, their deficits now are comparable to our worst pre-TARP deficits.
It's the fact that their currency is artificially low that helps to make them such a great exporting power.
It's the fact that they have their spending under control that allows them to finance the rest of the world.
It's the Chinese people and companies who are lending us all the money, not the Chinese government.
08 Nov 11
Originally posted by EladarThere's a heck of a lot more things they are doing wrong though.
It seems to me that China is the country everyone is looking to for financial help. Evidently there's more to financial security than per capita GDP. There's something that China is doing right that we in the West are doing wrong.
