Washington Post, July 3, 2009 Signs of Recovery?

Page A18:

"The best hope for improvement is for economic stimulus spending to kick in more vigorously.

It is too early to judge the effectiveness of the stimulus plan, given that the spending package is only starting to ripple through the economy." Chief economist Steven Ricchlute said:"The economy is still in consolidation and will be through year-end." It is educated guesstimate.

My view: Hopefully the positive scenario will be on the way with faith,hope and love.

Page A16:

Steven Pearlstein wrote:

"Households are overburdened with debt, consumer spending is likely to remain sluggish. The best hope for a sustained recovery may lie with a spurt of business investment in new technology that enhances productivity." C+I sectors are mentioned here. Human behavior is hard to predict,really.

It should be noted that C+I+G+F would be the complete Aggregate Demand. The above is C and I. We must take into consideration of Government Sector and Foreign Trade and data would be fluid at best. Moreover,capital formation is one of the functions. O=f(A,K,L) as the equation for Total Output as Aggregate Demand.(sic)

Output is the function of Technological Progress, Capital Formation and Labor Force Development. I am inclined to stress L for labor force development i.e. Education and Training for enhancing productivity. My reasoning rests here for reader's comments.

The above rationale would be applicable to US economy and China's economy as well in my humble opinion.

Friday,July 3, 2009 at 10.42 a.m.
Francis Shieh a.k.a. Xie Shihao, a lifelong student of economics to compare notes with others for the necessary learning processes especially Lingonomics with Etiology.