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WSJ: India’s success will depend on its private sector. Globe and Mail: Twenty years after unification, Germany’s divisions persist. GlobalPost: Democracy in Sri Lanka slips away as it builds closer ties with China.
Japan chooses to follow China over the US
Anatole Kaletsky, the chief economist of a Hong Kong-based investment advisory firm, writes in the New York Times that Japan’s recent decision to emulate China’s economic policy rather than criticizing its currency manipulation reveals a new era in economic management. The dominance of free market thinking is over.
QUOTE: Instead of obsessing over China’s currency manipulation as if it were a unique exception in a world of untrammeled market forces, the United States must adapt to an environment where exchange rates and trade imbalances are managed consciously and have become a legitimate subject for debate in international forums like the Group of 20.
India’s success will depend on its private sector
Salil Tripathi, a writer based in London, writes in the Wall Street Journal that the blame for India’s Commonwealth Games becoming a disaster should not fall on the people or culture but the Indian government. State-run projects tend to have no accountability whereas private companies meet deadlines and compete effectively.
QUOTE: The Games episode brings into stark relief the fact that India succeeds—and the economy grows, lifting people out of poverty—when private-sector entrepreneurship flourishes. It descends into chaos whenever the government steps in.
It’s time for a US-China trade war
Columnist Robert J. Samuelson writes in the Washington Post that China does not support the rules governing the world economy, and this has a big impact on other nations. He argues that a trade war between China and the US might be necessary to force China to adhere to international standards.
QUOTE: As the old order's main architect and guardian, the United States faces a dreadful choice: resist Chinese ambitions and risk a trade war in which everyone loses; or do nothing and let China remake the trading system. The first would be dangerous; the second, potentially disastrous.
America’s unemployment crisis is a matter of will
Columnist Paul Krugman writes in the New York Times that “structural unemployment” is a myth, and the unemployment crisis in the United States could be solved quickly if the political will existed to fix the problem.
QUOTE: We aren’t suffering from a shortage of needed skills; we’re suffering from a lack of policy resolve. As I said, structural unemployment isn’t a real problem, it’s an excuse — a reason not to act on America’s problems at a time when action is desperately needed.
Regulation costs hurt small manufacturing in America
Nicole V. Crain and W. Mark Crain, economics professors at Lafayette College, write in the Wall Street Journal that the high cost of regulation compliance has badly hurt the US manufacturing sector.
QUOTE: As much as it is fashionable to blame China for the demise of small manufacturing in America, the evidence suggests that looking for some reasons closer to home is warranted.
Twenty years after unification, Germany’s divisions persist
Columnist Doug Sanders writes in Toronto’s Globe and Mail that despite an investment of trillions of euros and much time and energy, former East Germans have not been able to catch up with their counterparts in the West.
QUOTE: There are many lessons in this: First, that the way to bring about an economic renaissance is not to throw money at a country.
Obama should support centrist policies from the start
Columnist Clive Crook writes in the Financial Times that President Obama does not need an economic reset but a political one. He argues that Obama should espouse and defend more centrist policies.
QUOTE: Instead of blessing leftist solutions, then retreating feebly to more centrist positions under pressure, he should have identified the centrist policies the country could accept and advocated those policies.
Democracy in Sri Lanka slips away as it builds closer ties with China
Karunyan Arulantham, a member of the Tamil American Peace Initiative, writes in GlobalPost that the international community should take notice of Sri Lanka’s increasingly autocratic tendencies and close relations with China.
QUOTE: While China may be unfazed by the island’s march toward autocratic rule, Sri Lankans should consider what a future with such limited friendships would look like. And the West should consider how many more borderline democracies it can afford to watch fall.
Americans’ develop a love affair with debt
Staff editor Daniel Indiviglio writes in the Atlantic that Americans’ total debt per person has increased about tenfold since 1948. He argues that student loans and the popularity of credit cards are to blame.
QUOTE: How much more debt do Americans have now than they have historically? The numbers are pretty incredible.
Americans must create a new, responsive government
Lawyer and author Philip K. Howard writes in the Daily Beast that American government has become too disconnected and incompetent. He argues that the citizenry must take back control of the government and demand a new approach to governing based on individual responsibility.
QUOTE: Going forward, laws and regulations should expire periodically under sunset laws. Government must make choices for the future, not stay mired in choices of the past.