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...Maybe the two countries should swap stimulus packages. Every economist worth his or her salt agrees that the global economy needs to be rebalanced so that the U.S. becomes a bit more like China (spend less, save and invest more) and China becomes a bit more like the U.S. (spending more, saving less...

Author: /time Magazine | Title: Should China and the U.S. Swap Stimulus Packages? | 3/5/2009 | See Source »

...China needs to balance export-led growth with a stronger domestic economy grounded by greater consumer spending. Two things need to happen: real incomes need to grow for all Chinese consumers (not just those working in urban areas). And consumers have to feel secure enough to spend more of what they make, rather than hoard...

Author: /time Magazine | Title: Should China and the U.S. Swap Stimulus Packages? | 3/5/2009 | See Source »

...China Development Research Foundation, a think tank that advises the government, just issued a report calling on Beijing to spend 2.6 trillion renminbi (about $370 billion) on social programs by 2012. Lu Mai, the secretary-general of the foundation, notes that the government has started down this road with a new plan to drastically expand health coverage in rural China, where some 800 million of China's 1.3 billion people live. That's a step forward. But China will need to spend more to expand its safety net, as Lu says, and it needs to hurry. If only it could...

Author: /time Magazine | Title: Should China and the U.S. Swap Stimulus Packages? | 3/5/2009 | See Source »

...responsibility is to do what's right for Louisiana taxpayers. We turned down $97 million as part of the unemployment-insurance program because it would have created a permanent state spending obligation. I think Louisiana's taxpayers are smart enough to understand that you don't spend a dollar to chase a dime...

Author: /time Magazine | Title: 10 Questions for Bobby Jindal | 3/5/2009 | See Source »

...made by the phrase: the West made them do it. Yes, some of the countries on the brink of collapse have brought disaster on themselves. Places such as Latvia and Bulgaria have run massive current-account deficits and are now paying the price. But the ability to borrow and spend so much comes, in part, because the countries had opened up their capital accounts and sold off their banks to Western Europe at the E.U.'s urging. Financial liberalization and free trade were mantras recited by the E.U. (and others) as the Eastern states readied to join. The policies work...

Author: /time Magazine | Title: Solidarity's End | 3/5/2009 | See Source »

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