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Japans market hit its peak 25 years ago. Looks like Europe isn't growing now. Is the US next? How will people invest or beat inflation when the stock market stops making gains?
That's what happens when governments meddle in the economy. Japan's government has been trying to stimulate their economy for 25 years. Europe for the last decade. Now the US, too.
It's time to admit that Keynes was wrong and turn back to what fueled the US in the 80s and 90s: Supply-side tax cuts. Let's stimulate investment and growth instead of subsidize non-work!
Europe's problems are mostly political. They only went half way with economic and political integration and are now stuck and dealing with problems associated with a unified monetary policy, but erratic and contradictory fiscal policies. It is the economic version of a three legged race with governments that want to go in different directions.
With that said I don't think Europe has hit its peak. Assuming that can sort out their political issues either with some countries abandoning the Euro or adopting a more uniform fiscal policy Europe will keep growing. Some economies like Bulgaria and Romania have room to grow and the EU will be adding new members via its western Balkans police and probably expanding beyond that in the distant future to include places like Moldova, Turkey, Cape Verde, etc. as such they will be constantly adding new markets to their economic community, and if done carefully and with standards, that means growth.
That's what happens when governments meddle in the economy. Japan's government has been trying to stimulate their economy for 25 years. Europe for the last decade. Now the US, too.
It's time to admit that Keynes was wrong and turn back to what fueled the US in the 80s and 90s: Supply-side tax cuts. Let's stimulate investment and growth instead of subsidize non-work!
Reaganomics again? We are already more Reaganomic than ever.
For the record, I think that there is harmful government intervention, but not so much taxes as keeping interest rates near zero. This leads to a distortion of investment capital toward whatever can be easily leveraged, rather than what actually is productive for the economy as a whole, and by extension, society.
That's what happens when governments meddle in the economy. Japan's government has been trying to stimulate their economy for 25 years. Europe for the last decade. Now the US, too.
It's time to admit that Keynes was wrong and turn back to what fueled the US in the 80s and 90s: Supply-side tax cuts. Let's stimulate investment and growth instead of subsidize non-work!
Get out of here.
Tax cuts only increase income inequality.
Japan's problem is extremely low birth rates, which means declining population thus declining demand. The correction for low birth rates is immigration.
Europe's problem is the Euro and its commitment to austerity. An economy can't grow by cutting it's own workers.
The government kickstarts the economy by spending.
GDP = Federal Spending + Non Federal Spending + Net Exports
It's too early to make a statement that Europe has hit the wall like japan did. My guess is that the Germans will keep driving the economy over there with the Brits doing their part. France is a question mark as they have driven their most productive to leave and brought in ISIS wanna bes...so my prediction for France is not good.
Every nation and all in it are dependent on what they can produce. Once government gets too involved what is produce goes down and what you produce doesn't pay for what you want. Socialist policies in the end produces less and less and that means to keep up you borrow on the future of other generations. The real scare now in Europe is a loss generation that will never catch up even if reform happens. Japan has always produced well for its size even thru those twenty years which is why they do not have debt crisis; they owe themselves.
Government manipulation of economy / money supply / business regulation...
Evolving world trade / economics...
These are the things that have had major impact on national economies and outlook. They will affect each differently as the size and focus of each economy varies, but be sure there is always impact. The US is not immune but results are hard to predict.
Japans market hit its peak 25 years ago. Looks like Europe isn't growing now. Is the US next? How will people invest or beat inflation when the stock market stops making gains?
If Japan was willing to inflate their wages to pay for their houses then they wouldn't be stuck, same here, and in Europe.
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