In frontline treatment, we advocate self -aid and mutual aid. So do us in economic treatment.
“Cash for clunker” ----the lately passed consumption stimulating project, is expected to help the car industry to get through the trying winter. This may be an effective program to stimulate consumption and I believe the result of the project may profit the entire American. It could be considered as an American self-aid measure and It leads to the better side.
While, I don’t think another economic program from Washington could bear as much fruit as “cash for clinker”. Now, American is trying to follow the lead of Asian Economics’ export oriented development pattern, that is, by selling goods to other markets. This could be considered as a mutual aid program, but the question is and remains: Could other Economics really help even if they are willing to (or have to)? Just take a look at the general situation of Global demand and we can find that the alarm of Global demand shrinks is not yet all clear. Some Economists even warn that the severe overproduction may cause a world wide deflation.
Under these situations, Export orientation just seems so weak to help us out of the downturn. Maybe Washington should just really use its head.
Monday, July 27, 2009
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