Andy Mukherjee - On The American Stimulus Package
Andy Mukherjee, on Wednesday, February 13, 2008, in his syndicated column used his Asian background with devastating effect. Devastating to his (at least, partly Indian) background.
He writes, "the stimulus package that has been put together to keep the U.S. economy from tipping into a recession”.
Just what is the problem with that. In the current economic thinking, all Governments are expected to create these ’stimulus’ package.
Andy Still Talks Of Aid
He further writes, “At $168 billion, the largesse is almost three-fifths more generous …
than the record $107 billion that 22 rich nations together gave out as official foreign aid in 2005 …” (ellipsis mine)
I thought every country has a right and as per current acceptable political philosophy, it is the bounden duty of Governments to be generous to their citizens. What exactly is the objection that Andy has to the US Government’s ‘largesse’ and ‘munificence’, (his words) I am unclear about on that till now.
Which planet is Andy on? Since he is writing a business and finance columns, is he aware (I hope he is) of the large body of research that shows how aid has in fact creates problems - and doesn’t solve any. The notorious PL-480 was abandoned because it elongated the cycle of food scarcity.
Low self esteem, Andy?
He advises,”Middle-class Asians ought to turn green with envy at the “home bias” implicit in the munificence of President George W. Bush’s administration.”
So what does Andy expect - Uncle Sam should be more liberal to Asians than to Americans? Does he expect Americans to earn and be taxed for the benefit of Asians? And just why does he think that Asians (at least Indians) will turn green with envy.
I am sure that Asia wishes to compete with the largest, best, competitive economies - but surely there is no envy involved (exceptions apart). I am also sure (unlike Andy) that, in time, we will create a level playing field (more important and more on that later) and Americans will want to be born in Asia (and most probably, India).
Andy’s Cheques by mail programme
Unlike the 111 million US households that will enjoy some tax rebate, there won’t be any cheques in the mailbox for the Asian workers.
And who exactly does Andy think, is going to send cheques by mail to Asians? Americans? Just why will Americans do that? How does Andy think Americans will fund this Andy’s ‘cheques by mail’ programme? Does Andy think that 60-80 million working Americans can suport 3 billion Asians?
And why does Andy think that Asians will queue up to take this charity? Just why is Andy’s opinion of Asians so low? Is is it because of his own low self esteem?
Asians Are Funding the US Stimulus Plan
Asia lost last year (my estimate) more than US$300 billion dollars due to the monetary policy of the USA. Deliberate, well thought out monetary policy by the USA Government. The truth my dear Andy, is that American lifestyle is being maintained due to Asian stupidity. The Chinese, Japanese, Indian, and other ASEAN countries have lent the USA - which is in the hock by over US$2 trillion dollars. They will lose US$ 300 billion for the privilege of lending US$2 trillion to the USA.
What? Asians Fund The USA …
Why? Because the system is fixed. Go back to Bretton Woods! The Anglo Saxon Bloc controlled 80% of the world’s gold production and reserves. Hence, only they could underpin their currency with gold- which the world accepted. It is separate story that they defrauded the world - and the system unravelled within a short 20 years.
And the world has been paying a price for that moment of folly.
What Does Asia Need
Asians need to create a new financial system. That is what Asia needs - and that is what US has been sabotaging for years now.
And a case for that is what I would have expected from you Andy - or is that too much too ask for!