Friday, February 27, 2015
Beyond Budget 2015
My former boss sent me this yesterday from Bloomberg News.
I had mentioned more than once that our leaders must be anxiously waiting for the global tide to reverse because we do not know how much longer we could take the pressure of the yawning gap between haves and have-nots. Looks like the wait is almost over as other economies also commit to more left leaning budgets.
This is the first round, the beginning of many income and wealth transfer budgets most economies will be making. I think it is not a good idea but we have no choice. We are really out of ideas and we simply cannot keep societies together on the old path leading to the 1% to 10% getting more and more of the wealth and income.
I don't think such populist budgets will solve the problem. Robbing Peter to pay Paul is only to buy time and a poor choice for creating wealth. The risk is to go overboard and condemn ourselves to many years of slow growth, but the bet is on Asians eagerness to better themselves especially materially. We will need again and again to be inventive and create new products and services to keep our "cannot stop" system of running economies going. As Asians manufacture, import and consumes the familiar products hopefully this will give time for the most inventive people to create the next generation of global demand. We need more Apples and less zero sum fatalistic thinking which so many economists and worse government leaders are so fond of.
Posted by PengYou at 10:00 AM