Skip to comments.Japan and Europe Are Killing Themselves
Posted on 05/19/2012 6:19:21 PM PDT by bruinbirdman
Can the U.S. lead the world back to prosperity? The global economy is lurching toward the cliff. Twice before over the last 75 years Washington took the necessary action, and after November, with a new President and Congress, there will be the opportunityand imperativeto do so again.
The 1970s were a decade of economic turmoil and stagnation. The 1930s were worse. And now the world is headed to the brink again.
The destruction of Bretton Woods in early 1970s led to a horrific, inflation-wracked decade. The U.S. experienced a stagnant economy and rising inflation and was seen as a malaise-ridden nation in irreversible decline.
But then came Ronald Reagan, who killed the terrible inflation of the 1970s, sharply reduced income tax rates and pushed deregulation. Most of the world followed suit, with countries such as socialist Sweden hacking away at their sky-high tax levies. Along with a forceful foreign policy backed by a resurgent military, Reagans policies brought about the demise of the Soviet Union, and the world experienced an unprecedented economic boom as hundreds of millions of people joined the middle class.
But since 2007 the world has been in an economic crisis.
Each of these disasters was the result of catastrophic government policy errors.
Today Europe is choking on excess spending, taxation and regulation and a flood of cheap money. Its feckless politicians wont cut spending nearly enough. Worse, they saddle their countries with ever more growth-killing taxation. Europe is following the path it did in the early 1930s. We havent blown up the international trade system as we did back then.
Its not only Greece and other European countries that are falling apart. The media have paid little attention to the fact that the third-largest economy in the world today, Japan, has been strangling its economy
(Excerpt) Read more at forbes.com ...
Why does it matter if there is the inclination to lead, as long as there is not the ABILITY?
The Marshall Plan bail-out (etc) came at a point where we did not have FAKE capitalism, i.e., if you drove a company careening off a cliff then OTHERS were not punished for that. Which is really just respect for property rights.
But now FAKE capitalism is EXACTLY what we have — “Too big to fail”, with all the predictable results.
At this juncture in economic history, here he’s asking a somewhat academic question.
If he had been president, we might not be in the shape we are in today.
” after November, with a new President and Congress, there will be the opportunityand imperativeto do so again. “
But not the ability... Mr. Forbes, you may not be broke, but the rest of us sure as hell are!!!!!!
Can the US lead the world back to prosperity?
What decade is he living in? The policy of this government is to destroy the middle class in the name of utopia
“Forbes is a good man. He would have been a good President”
Agreed. I was very much against him back in the day. I was wrong.
Seriesly, reading the full article is instructive; the author predicts not only an Obama defeat but control of House and Senate (I think he's right), and if that happens there's reason to believe we'll get the economy on track. He mentioned a tax cut, but spending will also be cut (counting on Congress here), and business and consumer confidence will rise, creating jobs--real ones in the pvt sector. From there it will snowball.
>Can the U.S. lead the world back to prosperity?<
When it is *sshole deep in debt?
The US can only lead with CONSERVATIVES in charge. Anyone is is FAIL.
“Forbes is a good man. He would have been a good President
Agreed. I was very much against him back in the day. I was wrong.”
Sadly, I think he was done in by “Q” ratings. Let’s face it, he just doesn’t have good ones. OTOH, Presbo’s is STILL through the roof. Unfortunately, these are the times in which we live.
Too far past the tipping point now to do anything except hang on for the long ride down.
The run on banks in Europe as begun, Fitch gave the entire EU a head's up, the IMF is borrowing like there's no tomorrow, and we're stuck in the ZIRP trap till at least 2014.
Sorry, Steve. No coming back from this one. We haven't hit bottom yet.
I agree. FR is Mecca for “the end is near” types and has been sice I’ve been here. I won’t play.