The flexible economic policies implemented with audacity by the Chinese government have helped to sustain economic growth and avoid deep recessions in China. Their social policies have helped to maintain relatively fairer wealth distribution of an enhancing demand, and the vastness of the Chinese marketplace has provided space for development and consumption, indeed. All of the above, in one way or another, is not properly implemented by the most developed countries and the EU, whereas the decline of industrial production has deeply affected the middle class and the over all consumption. Austerity measures, budget cuts, older population, deteriorating infrastructure, lack of well paid employment, etc have put extra stress on the system. However, the modern day capitalism could well be workable if adjusted to the new economic conditions, whereas momopolies and oligopolies are minimized, and the benefits go down the chain into the small enterprises and small investors, instead of the unfair market competition of the presence.
the Frank O'Callaghan statement that the austerity's only accomplishment was the accelerated concentration of wealth "succeeding" an over all disaster is the right conclusion: new approaches in economics should be use such that would build up a working market economy not just based on industrialization or even high produsctivity... sorry of being erethic
IMF's mistaken projection are roduct of pro-industrial trickle down economics, which seemingly is not performing as this article has fluently presented, whereas is gone the alternative expanding role of the governments, but mostly what is at most gone is the rliance of large business (i.e. transnationals) and large investors to solve the issues and bring long term economic growth...., well ask yourselves if any alternatives are possible at all? - I dare to say yes:?
Even in principal Mr. Soros is correct to call for alleviation of the current austerity policies, for quantitative easing and pro growth policies, he underestimates the dysfunctionallity of the European Union itself, the ideologically founded economics fiscal and monetary policies of VAT, subsidies, and oligopolies that benefit the very few and in many countries do not protect the consumers, policies that in the conditions of expanding globalization, rising productivity, and the ongoing outsourcing and moving of manufacturing, and the China's industrialization are pro-business cyclical. The Euro's strength is an extra burthen on many EU economies, too. However, cheap financing of struggling economies would not help them improve…. The microeconomic structures and monetary and fiscal policies, the consumer protection, and etc are the issues, indeed.
The PM Abe actions are revolution in economics, whereas instead of waiting economic activities to happen, they are provoking and promoting such with the connecting their monetary, fiscal and stimulus policies to the inflation (not to the debt as current geniuses of economics hold on). PM Abe's economics is one of the future prompted by the globalization and rising productivity, and China's overproduction. However, such actions would succeed if the beneficiaries are the small and medium businesses and investors that would boost the real market competition, instead of further concentration of capital into the big transnationals and investors..