The author of the article Vive la Difference, in the most recent Economist believes that France may be doing well despite the recent market let downs. The author believes that France is doing well with its gardening projects, infrastructural rebuilding, and the sharing of jobs. It has created a new pecking order for European nations. Now Sarkozy with his turn against Capitalism is now able to boast his model in comparison to Britain, Germany, and the United States. Yet Germany and Britain have made calls toward socialism and they believe it will benefit them. The US is still adamantly against Socialism and the right-wing senators are calling any government aid via bailout and redistribution, a step towards socialism that must be fought off. This is the kind of labeling that kind of bothers me. Right when there is a solution that involves government interference, the US government will shoot it down, both Democrats and Republicans. Anyway back to the France part, there are downsides to this plan too. Unemployment never really falls below 8% and French people pay very high taxes. There is limited investment in France and they don't have as many options as Britain, Germany or the US do when it comes to investing. So my question is, should the "French model" be followed or should the West
Why French or British or even Chinese models? The US has to have its own model to suit its requirement.
ReplyDeleteThe main problems of the US economy would appear to be:
1.An enormous current account deficit. That is to say there is practically no saving habit among the Americans and they overspend and live on credit which the world unfailingly has been extending. The collapse or the buckling down of the US economy has prompted the Chinese - one of the largest holders of US Treasury Bills or Promissory Notes - to call for a new international currency! (Pranav if you do not understand the implications of this please let me know)
2.The US Financial system, like all financial systems, is greedy. But only in the US greed could have played itself in full for want of sensible regulatory controls.
Obama's new tax ideas , I think are worth trying out. Also, there should be stimulus for foriegn investment in US to control declining employment rates. There is nothing socialist or capitalist in such ideas.
Like the Soviets in the past and the Chinese to some extent now, the US right wing is given fanatically to dogma driving common sense out.
Mani Thatha
French model is best. In which other model can all live happily ever after? In a capitalist model, if you work harder than the next guy, cteris paribus, you get rewarded and the next guy does not. Would you not want to be in a system where you are the "next guy" collecting the fruits of someone else's labor?? I would!
ReplyDeleteAs far as what what "right wing" politicians are doing, is offering temperance to overreaching by the "left wing". That is the way this country works, checks and balances. China is check, balance and the kitchen sink are all on one side.
What do you think about that?
I think that the reason why the French model appears to be superior (for lack of a better word) is that they are used to what has been going on, they aren't as hardly hit by the recession because the government is trying to maintain their 8% unemployed rate. Sarkozy may have earned a couple bonus points by keeping the French people active in their economy so while there isn't a whole lot of growth there isn't a whole lot of pain either. No pain but no gain.
ReplyDeleteand just to say something about the "checks and balances" system it was meant to apply to the 3 branches as a whole. The legislative, judicial, and executive branches can control each other in some aspects.
As far as the US is concerned I think the best thing to do is to start innovating. There needs to be increased funding in science and technology.