According to the report of American "newsweek",in the 20 th century, Asian prople often ask themselves, “what can we learn from the modern westers’ innovation?” But now, this problem is just the other way around: debt-ridden, slow-moving, what can the western countries learn from China?
First, western countries should again get a clear idea of the advantages of pragmatism. Few years ago, two “giants” in Asia, China and India lagged behind in economy than any other countries. However, from the time of 80s and 90s of the twentieth century, China and India experienced maket reform, they started going into the fast growing period. What is more important is that neither China nor India abandoned the traditional culture when they open their market to the world. Instead, they wisely use government guidance to balance the capitalism. As Marty Sen, an India economist says,the invisible hand-market need the help of the visible hand of government.
Compared with Asian countries, America and European countries have already throw away their unique ways from the deep of their consciousness. Their lack of pragmatism increased the outbreak of the global financial crisis. Since the 1980 s, the United States is not at home in the free market ideology, President Reagan's motto also belittled the role of the government, he said: "Government is not the solution to our problem, the government itself is a problem."
Western countries should build a perfect long-term fiscal policy
If the United States would free themsleves from the “straitjacket” of government, they will see, America’s problem would not be solved. Several wise federal measures would bring the United States back to the correct track. Such as a simple consumption can greatly slash America's huge government deficit, and won't damage the productivity; Low gas taxes will also help cut the dependence on oil imports, which could develop creativity for the green energy resources. Likewise, slashing the waste agricultural subsidies and other special fund can reduce the deficit.
But in order to make good use of these common-sense solutions, American people will have to will put aside their small government and pay less attention to regulatory rhetoric. The United States politicians will have to distinguish between good and bad tax tax revenue in accordance with all public policy professor school of course,. Asian countries believe in this wisdom, which results a perfect and long-term fiscal policy for them.
At the same time, Europe has also lost in different ideology traps: they think that European governments can always provide unlimited resources, continuing to borrow money, as if there was no tomorrow. Unlike the Americans who knows the marker, Europeans cannot predict the market that their endless borrowing would bring what kind of results. Today, the European Union is in a battle mode, trying to avoid sovereignty collapse. And the international monetary fund and the European Union has created each other an echo at a $580 billion fund to rescue the European economies which is currently in trouble. This will help Europe win some time to breath, but it can't be completely be solved. As Americans need to know how to wisely increase tax, Europeans also need to learn how to cut back on spending, and this has found the answer from the past crisis.
Of course, this is not the first time that western countries should learn wisdom from the Asia countries. Once upon a time, the wisdom of Greek and Roman that be saved in the Arab world and the library of the university drove in Europe in the dark ages into revival. Let us hope that the duration of western financial dark ages last short!
Resource:
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