Is Asian economy the same as the economy of our past?
We had bank failures in the 1980's. We had economy stifled by high interest rates. We had economy revived by supply side economy of military and industrial complex, however short a period. Every dollar spend on military purchases effected $9 increase in the economy, until prime contractors refuse to subcontract. This does not sound like the asian economical problems.
However, asian economy is not based on host country's demand side economy. It is based on government sponsored supply side economy of export business. As all supply side economy goes, demand falters and the economy disappears.
Now, the new economy is built on demand side economy. The demand is created by obsolescense and replacement theory. The new economy is based on mass distribution. The investment into mass distribution created jobs and the working population supports the new and larger economy. When labour pool starts to tighten, the supply side economy of welfare and social security recipients will be weaned over to the demand side economy, because of higher pay.
The asian economy has to become self sufficient using the demand side economy plan. In the mean time, supply side has to support the banks. Banks are to borrow from central bank to buy government bonds for profits to avoid failure. The local demand side economy, mass distribution, is to be developed. All individual businesses has to be merged and acquired to be made profitable. Management consulting with refocus and re-engineeering, if neccessary. It will take 5 years to recover; but it will be a sound economy, hence. |
