Sunday, February 15, 2009

How Obama-san Copies Failed Japanese Policies

Even as Obama actually argued for his policies on the basis that they are needed to prevent a repeat of the Japanese "lost decade" experience, his policies are in fact strikingly similar to those pursued by the Japanese. This New York Times article points out the similarities between the approach that he and his Treasury secretary Tim Geithner has in dealing with the banks with the approach the Japanese had in the 1990s.

But the similarities go way beyond that. In fact, the Japanese implemented almost identical policies in the form of budget deficits of 10% of GDP and zero interest rate policies, making it ironic, to say the least, that Obama argues that in order to avoid ending up like the Japanese we must implement the same policies that the Japanese implemented!

Perhaps it would be a better idea to copy the policies of Warren Harding?


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