Page A15:(By Robert J. Samuelson)
The financial crisis has gone global,economic growth in 2009 will be the lowest since 1980. Even China has slowed; steel output wad down 12% in November from a year earlier. Global financial markets are interconnected. Money flowing into developing nations iss expected to shrink 50% in 2009 from 2007 levels,estimates the World Bank.
All the bad habits of years-excessive borrowing by consumers and money managers,careless and reckless lending -grew in a climate when gains seemed ordained.
What will emerge from these shattered illusions? Will the crash stir social unrest,abroad if not here? Will Americans become so thrifty that they hamper recovery? Will economic nationalism surge? How will capitalism be reshaped? Much depends on whether the frantic policies to combat the recession succeed. Probably they will, but there are no guarantees. My comment: The balance of the mix of public sector and private sectors is to be pursued under the new administration in 2009.
Professor John K. Galbraith's saying is worth remembering: "There are those who don't know and those who don't know they don't know." in good humor!
Francis Shieh a.k.a. Xie Shihao,a reviewer of "Almost Everyone's Guide to Economics" by Professor Galbraith,published by Atlantic Economic Journal,September 1979 for reader's reference. December 29, 2008 at 9.18 a.m.