Monday, January 24, 2011
Just a few minutes on the economy.
I was born in the US but I am a great fan of China and their growth as a leader in the world. I really do think the US and China's economy are linked in a very important way. We can see the truth in that this past week as the US played very good host to China's president. I am not an economist, but I do worry about the building inflation that I see worrying me and those around me. Recently, I've been paying a lot of attention to the Asian news market. It seems they are building inflation a lot faster than we are. I just want to outline some interesting things that I've seen them do and I would like feedback on if these things would work for us. Psychologically, I would think they would make us all more relaxed and confident about our economy. What repercussions this might have toward other parts of the economy and government I don't know. Any good links to other ideas?
I've heard some buzz as far as in China, some people suggesting that the government should reallocate more money from the rich to the poor. Would that work, even in China? I guess mainland China could do that if they wanted to, but it would never work here. I'd like to see them get Hong Kong people to stand for that as well. Even over there, business folks want to be so liberal and make so much more money nowadays, I think that would actually cause an upheaval in the economy. That wouldn't help at all. At the same time, those economists are suggesting privatizing some government run parts of the economy. That seems like a very strange policy wrought with contradictions. How can you instate state control over the wealth of a nation and yet place the basis of that wealth in the hands of private individuals or organizations? Seems like you're just lengthening the problem and making more people poorer in the process. Perhaps that's what they want to do, give a majority of the wealth and power to fewer people so that they can be controlled. Control. A reoccurring feature of Chinese politics.
Both China and Korea seem to have raised interest rates this past week and that's certainly something we don't want to see in this country, we never really want that on this side of the sea. Of course sometimes it's necessary. Something interesting that Korea is doing is freezing utility rates for the next six months, and suggesting colleges do the same for tuition. Six months seems like a short time to me but in the short term it might make people feel good that they are not going to find a surprise in their mailbox over the next few months.
Just some observations and thoughts, as I said, I'm a US citizen but I'm also a big fan of China and (maybe because I'm Chinese-American) want to see the Far East grow and succeed. I'll be anxious to see how these changes affect that part of the world and what happens 6 months later. I always have the point of view that we can all learn from each other, we're all in such poor positions as far as our economies and the outlook as far as business leaders toward the future state of the short term economy. I hope someone has an answer, I'd say that we in the US are not doing enough to produce jobs and reduce debt. Perhaps the east has something to say about that.