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The following article was published in our article directory on December 1, 2010.
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Europe and U.S. Should Low Noble Head Learning From China and India

Article Category: Business

Author Name: xia zihui

Almost the entire 20th century, the Asian are asking themselves, should be both modern and innovative to the West learn? Now, the question in turn: the debt-ridden, stagnant development and prosperity of Western countries in Asia should be to learn?

First, and most importantly, the West should re-learn to Asia pragmatism. Just a few decades ago, Asia's two giants China and India are still imperfect ideology-led political and economic stagnation. However, when 80 Chinese in the 20th century free-market economic reforms began in India in the 20th century, followed by 90 years, the two countries gained rapid economic development. It is essential that open their markets in China and India have not abandoned good and bad, regardless of their advantages. But the wise guidance of the Government in accordance with the direction of the impact of capitalism to compete.

The cool-headed centrist formation of the United States and Europe, in contrast, the U.S. and Europe have each experienced the process of ideological extremes - and a complete lack of pragmatism has led to the sudden global financial crisis. 80 years since the 20th century, the United States more and more interested in the concept of unfettered free market, more lightly the role of government - according to Ronald Reagan's famous phrase is: "Government is not a solution to our problem; government itself is the problem. "

Former Federal Reserve Chairman Alan Greenspan will this ideology to the limit and watch a variety of financial derivative products appeared in 2002 and 2008 quadrupled, reaching 12 times the size of the world economy has refused to adjust the large emerging markets.

Of course, when the product of a free market economy collapse, or decisive government intervention to save the economy. Despite this fact, many Americans are still deep in thought and resolutely safeguard its opposition to "big government" concept, as we confirmed in the mid-term elections, as against the Republican tax competition for parliamentary seats in popularity when .

If Americans can be to transform itself from the shackles of anti-government rescue, they will begin to see that the U.S. problem is not unsolvable. Sensitive measures may make the whole federal state back on track. Give a simple example, a 5% consumption tax may significantly reduce the huge U.S. government deficit, but it will not hurt productivity. A small amount of gasoline tax may help the U.S. reduce dependence on oil imports and to create opportunities for the development of environmentally friendly energy. U.S. politicians must have to air all U.S. public schools to follow students are taught the truth: both reasonable taxes, but also unreasonably taxes. Asian countries, judicious use of this wisdom, and thus the right to establish a long-term fiscal policy.

At the same time, Europe has become the victim of various ideological trap: that believe in the total European governments have unlimited resources, can continue to take down, as if there is no tomorrow.

Americans think the market is the most convincing, and Europeans failed to foresee the market for their continued lending will react to. As Americans need to learn how to skillfully as taxation, the Europeans need to learn how to cut spending wisely - this challenge, the Asian countries in their own past and learn to cope with the crisis.

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