While there are many points here that make sense especially home-grown demand, there is no mention of opening up of agricultural markets by the OECD. There are many developing countries that can only export agricultural goods. Very few developing countries have any systematic export-oriented strategy. I am certain that the share of exports coming to the OECD is mostly from the OECD. As for domestic-led growth Denmark offers some examples. You can import a car at 160% tax. So I am selling off my car in the US. Gas is about 6 plus dollars a gallon. Taxes are at 65-70% of income. Everyone here gets unemployment benefits but demand for labor is high. In fact firms hire only people needed since they know that the state will pick up the tab. In the end the system seems to work despite the severe disincentives of high taxes that have been chasing out the IT types of professionals to other countries in Europe (especially Germany and the UK).
Cheers, Anthony xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Anthony P. D'Costa Professor of Indian Studies Asia Research Centre Copenhagen Business School Porcelaenshaven 24, 3 DK-2000 Frederiksberg Denmark Email:[EMAIL PROTECTED] <[EMAIL PROTECTED]> Ph: +45 3815 2572 Fax: +45 3815 2500 xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx On 4/7/08, Louis Proyect <[EMAIL PROTECTED]> wrote: > > http://chronicle.com/weekly/v54/i31/31b01001.htm > > Chronicle of Higher Education, from the issue dated April 11, 2008 > THE MATERIAL WORLD > America's Exhausted Growth Paradigm > > 1980 brought a new kind of business cycle, one that's no longer > sustainable > > By THOMAS I. PALLEY > > The American economy is most likely in recession, and high debt and > housing-sector problems spur fears that this downturn could be far more > severe than the recessions of 1991 and 2001. The Federal Reserve and > Treasury have taken unprecedented actions to stimulate the economy through > interest-rate cuts, infusions of liquidity, and tax cuts, all of which are > entirely justified but constitute short-term economic firefighting. > > snip... Lastly, developing economies must be weaned from their policies of export-led growth, and must focus on the development of domestic markets. In the realm of trade policy, that means putting an end to unfair international competition based on undervalued exchange rates, export subsidies, and unfair trade restrictions. That will require a new international economic architecture that promotes fair and balanced trade — a task that will require enlightened American leadership. > > Thomas I. Palley directs Economics for Open and Democratic Societies. > Previously he was director of the Open Society Institute's Globalization > Reform Project and assistant director of public policy at the AFL-CIO. This > column is adapted from a paper he gave at the most recent annual meeting of > the American Economic Association. > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > --
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