Killing the Recovery

[elleng]

NYT Editorial

'The world has barely dug out of recession and the global economy is again slowing dangerously. Most leaders seem eager to make things even worse.

Instead of looking for ways to reignite growth, Europe’s leaders — and Republicans on Capitol Hill — are determined to slash public spending. Europe’s fixation on austerity is also compounding its debt crisis, bringing the Continent even closer to the brink. Meanwhile, China’s government, which is struggling to contain inflation without letting its currency rise, has been trying to slow domestic demand, allowing its trade surplus to balloon.

Each of these policies is wrong. In combination, they are likely to tip the world into a deep recession.'

http://www.nytimes.com/2011/09/29/opinion/killing-the-recovery.html?_r=1&hpw

[Kahuna]

1. Can U.S. companies continue to have record profits with the EU's

austerity, if they continue to refuse to hire American workers? The way I see it, they (employers) have a choice to make. If they want to continue in business they need to put American workers who will be consumers back to work.

[elleng]

3. Complex; your conclusion is certainly correct.

Changing from 'refusal to hire American workers' will require many changes in the way businesses are done world-wide, so will take lots of time and effort practical-wise (contracts, finances, politics, etc.)

Fact is 'global economy' is real, and the world must figure out how to deal with/reform it so it's satisfactory to all/most. HUGELY difficult problems involved, tho possible with good intentions and wise leadership. The leadership must be political, financial and economic.

[xchrom]

2. rough seas ahead, cap'n. nt

[Kahuna]

4. With austerity in Europe and the U.S. how will companies continue

to prosper? Is Asia capable to take up the slack? Companies need to stop playing their political games and rehire workers if they want consumers. It's like a game of chicken.