According to an article in the Wall Street Journal today, China’s $585 billion government stimulus appears to be working. Raw materials imports and consumer spending are up while exports remain down.
Why do you think China’s stimulus appears to be working faster than the US economic stimulus plan? And if this is the case, can China’s recovery help the US current economic environment?
The Chinese stimulus might be the reason for the recovery or it could be just that the world markets are adjusting by themselves like every other recession has done. The answer to economic problems is not always just to throw a ton of cash at it and hope it helps it, if you just wait it out and you don’t panic you’ll be fine, everything takes time and this economic problem is no exception. In time things will level out, we’ll all be in another bubble, and again the bubble will burst and there will be another recession, these things run in cycles.
Another reason why china might be seeing a turnaround first might be in combination of their stimulus, and also with the help of us exporting a lot of money for the cheap imports that are coming from china. The money that China gets from us doesn’t go toward helping the people of China, but to increase their military capabilities while Obama weakens our military capabilities. It’s great to get stuff at a very low price when you go to the store but then you look at the bottom and see where it’s made and it says Made in China, I think the price is going to be greater in the long run when China has a military capabilities better than our own, and we have to fear them, that’s not a world that I want to live in and either do you probably. We are going to have to get our manufacturing jobs back in this country, so we don’t have to depend on another country for our goods. This sounds like our dependency on foreign oil doesn’t it; we could easily start drilling in our own back yard, and use other types of renewable energy but we don’t.
China is one of the worlds dirtiest countries in the world, and there human right record is crazy. China is to be never trusted or believed and doesn’t everyone know that China is a communist control country so if you want to take ideas that are coming from a communist country and run with them you go for it but don’t take me or the rest of the sane thinking American with you. Obama will probably believe this idea of throwing more money into the economy which will make the economy worst in the long run. I think the economy would have leveled out even if Obama and Bush didn’t do anything to fix it, because like every other past recession things level out.
China’s stimulus is working quicker because there is no debates on where the money is to go. They are a communist country and if you disagree, you risk your life. Do you think they have unions over there? I think not. Until we rein in the greedy unions in this country we will remain in a downward spiral.
Just another example of the government for the government and not for the people. It will always be about votes and re-elections, not what’s best for the country. Sympathizing with the unions is no different than sympathizing with the illegal immigration agenda with amnesty. Votes, votes, votes!!!!!!!
How else will these crooks get re-elected. They need for us to be dependent upon them. Unions, illegal immigrants, and others with their hands out will always be the focus of the corrupt government we continue to re-elect. We have no one to blame but ourselves, “We The Sheep”
i agree…the only reason why chinas stimulous is working is because the government does the right thing for the country. All our decisions are what people WANT and thats just stupid! Alot of people want different things and its not fair…which is wht the government should make the decision themselves!!! Im getting sick of the unions. China is a huge country filled with alot of people which is on the borderline with trust. But if the u.s. looks at what china is doing and realize that it is helping them than maybe we wouldnt be in this perdicament. hopefully chinas stimulous will help us.
The reason chinas economy is recovering is because the chinese government put money into the economy and the money went to the places where it was meant to go. China is a country that has a strict government and the government made sure that the money actually went to the steel mills and that raw materials are being imported for cheaper price. Since China has the third largest economy in the world it means that since chinas economy is starting to recover hopefully some of their goods and imports that we receive will be cheaper. Hopefully we get more chinese investors that are interested in helping the US economy begin to recover just as their own making us closer allies in the long run also.
I agree with many of the above statements. The reason why the Chinese stimulus is working is because companies like AIG aren’t taking the bailout money and giving there workers bonuses. First of all most of the money that was from our stimulus package is helping the rich! I feel that many of the people that are in need aren’t getting the help that they deserve. The Chinese goverment, though they are communisit and they are a strict government, they put there bailout money into things that they new would help there country suceed and not become further into debt with no improvements. Also in China there is no one there to disagree or agree. For the United States to make a decesion mostly everyone has to agree which is why where the ” land of the free.” However China’s seeing improvements before the United States becuase they put there plan into affect before we did.
I think that the US should start putting there plan into affect because soon we can be falling into another depression and that wouldnt be good if we lost all our jobs. If we were like China we would probably having a better economy than what we have now and suffer through this hard time. If Bush would of did something to make our plan succeed like China has we wouldnt be falling down hill in this hard time. Businesses wouldnt be going out of business.
China is recovering at a much more rapid pace than we are because the money they are receiving isn’t geared towards building a bunch of useless bridges. Yes they are definately putting a good amount of that money into infrastructure, but not with the main goal of creating more jobs. They infrastructures they aim to build are designed to boost the economy because of what they can do for the Chinese community upon completetion.
[Didn't mean to press submit yet.] In addition, there was no doubt a better allocation of the money. It’s a normal thing in the US to look down upon communism, but this could be what’s helping them recover from their financial crisis. With more order and regulations, there definately won’t be as much “rash” spending as there is in the US. While we feel the middle of a repression is the perfect time to be giving our executives extravagent bonuses, China is already well on the road to a financial come-back.
The Chinese government is like stated in previous blogs, much more strict and absolute than the U.S. government. The funds from their stimulus plan were allocated efficiently enough to actually help the economy go into the right direction. The U.S. stimulus package a.k.a. U.S. spending plan, greatly exceeded the Chinese package in size. The question stated is will the Chinese recovery help the recovery of the U.S. The answer is multifold. Yes, the recovery COULD help the U.S. recovery effort if we took them as an example. It will not help us though, because we must do things completely differently that the Chinese, like extend our stimulus money to executives of major companies. We might as well give it all up to them. It will probably be just as efficient as our current path, only a quicker death for our economy. We are now in a recession and on the verge of a depression. Our luckiest break would be if China, after recovering fully, would lend us a helping hand in our recovery. If not, I might have to move there like my brother and prosper off of their economic turn around. All in all, I have no faith for the rediculous spending plan implemented by Obama. I think I’d rather see BUsh back… Ouch!
I agree that China’s situation could or could not help the U.S. I definitely think we should take some pointers from them and how they were able to keep the exports to a minimum. China’s tactics are executed precisely and in a timely fashion. Obama needs to figure out how to go forth with a more solid plan and attempt to keep our exports down as well. However, I don’t foresee us acting as proficiently as China. That’s what separates us from them. Seriously though Charles…you gotta believe anybody is better in office than Bush.
Any improvement in China’s economy is good news for our economy. This is because a world economy is currently developing, and at the moment the dollar is the universal currency in this world economy. The fact is that China has more money invested in the dollar than any other nation on Earth. So in retrospect, China should be more worried about the United States entering a period of inflation, because if that happens the dollar will greatly drop in value, leaving China in a very bad position.
It doesn’t surprise me that China is doing better than the US. China understands what the effects of the downward economy is and they fixed it right away because there is no argument where the money is going. I think the US should take lessons from China in ways to bring our economy up. I do agree with mark about the fall of the dollar and the effect on China, but we really need to lift our economy up. I think American’s really just need a reality check and need to be wise with their money, not give it out for raises in a company.
China’s signs of recovery can help the US and also can’t. In ways they can help is by increasing demand for their exports but this might not work because this is the worst economic out since the 1930’s for us. Ways they cant help the US is by not getting the help from the countries China is, Such as in ways like imports of oil, iron ore and other raw materials. These imports came about in March. China’s stimulus package seems to be working faster because they aren’t in the same trouble we’re in. China owned banks and avoided the turmoil that worn down Western institutions. Also government debt is low compared to ours, so this is a big reason why their stimulus is going easier and more smoothly.
Sometimes I think these stimulus plans are a joke. If they get big enough such as this everyone is paying so much into them that they have less to buy and have a good time with themselves and everyone is just miserable. I think there are a lot of things in a stimulus plan that need to be taken out. Only the things of greatest importance should receive money but we often see some stuff where we are all like “WHAT?! THAT MUCH MONEY GOING TOWARDS THAT?!” but again I don’t have an answer. China is growing exponentially compared to us and the rest of the world. They will be a world power and already are. Its scary to think one day we might have to bow down to them in their seniority. One reason their plan is working, is because they probably have the money going towards more prudent things. They also have a ton more people to ‘donate’ to this stimulate plan than we do. They also are probably the biggest exporter of goods in the world. How much crap do you see in stores and virtually all of it is made in CHINA?! Sometimes I think if we cut off most imports we could catch back up. The problem is people want everything cheap. The problem with that is China can produce it grossly cheap. And American companies and such order from China to save money to themselves and in a way the American people because they can also sell it somewhat cheap. And how can Americans compete? I think its a good idea for us to start putting out more quality products. Such as cars that actually get good gas. The problem is all foreign things are generally cheaper or the same price but better in a lot of ways. If only we put the drive into doing this to our own products, we could rely more on ourselves, production would be up, more people would have jobs, we wouldn’t have to deal with foreign policy because we’re buying our own stuff, etc. But it is probably too late. Not to mention this country is in so much debt that we are already OWNED BY FOREIGN country’s already. Just we all don’t know it yet.
i think we can learn alot from what they have done and it can teach us what to do because they have already gone through it all
The Chinese stimulus package is being invested in key areas such as housing, rural infrastructure, transportation, health and education, environment, industry, disaster rebuilding, income-building, tax cuts, and finance unlike the US where the stimulus is given as a check in hopes that it is invested into the economy.
I think chinas plan worked faster because like it is stated above they are communists and their government doesnt care about the peoples oppinion unlike America were there is to damn many oppinions. China puts money were they think it will benefit the econemy because they want to be on top and they dont care who it affects. America has to go through to much B.S. to get anything done becasue we are a democracy and if you dont act carfully it will blow up in your face. So that to me is why it worked because we put humanity and corporate greed first and they put power first and china never would have given its executives that bailout money. As far as china helping us if they recover, i think that will only happen if we can still benefit them in the future and if not they will kick us while we are down.
I believe that China’s stimulus package is working faster because of a few reasons. One, it is indeed a communist country and that obviously means that the money is being allocated to the places that the government wants it to be; without any debate from the general public. Also, the money appears to be going into areas that are helping to rebuild the economy and they are seeing results at a far greater pace than the United States. I think that we could use what China’s done as a guideline as to “what works” to get things moving in the right direction. However therein lies the difficulty: because we are a democracy a lot of “red tape” is needed to go through certain processes. People do need to remember though that everything revolves in cycles. What goes down eventually must go up!