Former Secretary of Labor Robert Reich said:" The middle class is being squeezed by debt,plummeting home values and tightening of credit. There is not enough buying power in the economy. Secretary of Treasury Henry Paulson will release funding for credit as per Radio broadcast on Nov.25,2008. That remains to be seen,however.
In China,the middle class is expanding as known with evidence. The middle class is the backbone of any nation.
Jared Bernstein, a senior economist at the Economic Policy Institute said:"The 1930s recession became the Great Depression because policymakers did not take the necessary actions." The danger is not doing enough and it would be better to overshoot.
China is taking similar measures to boost the economy as per the media release.
My comment: Full employment and price stability is the goal from the Keynesian Model of the Cross and the crossroads can be seen in the West in USA and in the East in China. However,there are inflationary and deflationary gaps aprops of the shifting of aggregate supply curve and the aggregage demand curve. Such cyclical phenomenon maybe phenomenal for us to witness during the course of time.
Francis Shieh a.k.a. Xie Shihao is looking forward to see such happenings as a lifelong student of economics from human behavior.
November 25, 2008 at 7.06 a.m.
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