Wall Street Journal, January 27, 2010 RE: Comparative Economics in the world.
Page A9: International Monetary Fund (IMF) estimates that China's growth rate will be 10% this year and nearly as fast in 2011, the US and other rich countries are not likely to grow fast enough to reduce unemployment substantially. It is to be noted that jobs are relevant to economic growth. Jobs may be created in the public sector leading to the jobs in the private sector. That is the mix of two sectors in any economy. The role of the government must be understood especially during the global economic crisis.
Page A8: "Europe remains a major global player. Its 16 trillion economy accounts for 28% of global output, more than the US. The EU's integrated consumer market is the top destination for Chinese goods." Consumers in Europe would like to pay less for Chinese products when the quality is good but the cost is low.
The updated information may be useful reference for Sino-American Economics in the years to come. Open competition is the name of the game of trade to honor the Law of Comparative Advantage.
Francis Shieh a.k.a. Xie Shihao, a watcher of economic happenings in the global context. In Pin Yin: "Lai long qu mai" in the 21st century.
Wednesday, January 27, 2010 at 2 p.m.
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