The present world economy has been described recently on this List as being
in "melt-down". It's not in melt-down at all. The Western countries are in
a severe economic recession but China's production dipped only slightly
during the last six months and is already showing signs of re-gaining its
typical 10% economic growth. Protective trade tariffs might well be applied
by Western countries against Chinese goods -- or attempted anyway -- but I
really don't see how this could hold, politically, in modern times.
Consumer demand for the cheaper Chinese goods by populations in recession
would be very powerful indeed.
Nor will Western governments be able to impose higher taxes year after year
(15 to 20 years at least in the US, Japan and most West European countries)
on those fortunate enough to still be in work in order to pay the massive
debts of quantitative easing. Instead, governments will have to cut back on
government personnel and services. Leaks from the UK Treasury are already
talking about 20% cuts across all departments. Huge changes are about to
take place in all developed countries but it will still not be an economic
melt-down.
Keith Hudson.
Keith Hudson, Bath, England, <www.evolutionary-economics.org>,
<<http://www.amazon.com/dp/1906557020/>http://www.amazon.com/dp/1906557020<http://www.amazon.com/dp/1906557020/>/> _______________________________________________
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