America may be learning something from China’s stimulus plan—spending hundreds of billions of dollars from its cash reserves to keep people working. This is called bottom-up economic growth and the gap between the rich and working poor shrinks instead of expands. The opposite is trickle-down economics from the Reagan era where the gap widens.
Chinese jobs
China’s bottom-up plan makes sense. After all, how much can one rich person consume compared to hundreds of millions of people—a little spending from each person at the bottom adds up and is better for long-term economic survival instead of short-term corporate profits. Who cares if the wealthy grow their fortunes slower? Well, the rich do. I’m sure they love having that money filling Wall Street vaults.
It appears that President Obama has the same idea. During the presidential campaign, he said. “The project of the next president is figuring out how you create bottom-up economic growth, as opposed to the trickle-down economic growth.” It seems that with the passing of the health care bill (that has upset so many of the trickle-down people), President Obama is putting his words into action and following China’s example.
To learn more about China’s economy see “Why China is Studying Singapore” http://wp.me/pN4pY-2z
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