In this article, David Stockman discusses the increasingly
troubling problem of global deflation. In fact, he believes that we are in the
midst of an unprecedented global deflation. He makes a point of saying that
trading companies face falling commodity prices. This decrease has particularly
hurt China. He uses this information to lead him to his next point. A prime
example he uses while discussing global deflation is the current status of
China’s financial market. Some economists think that Chinese involvement will
help improve the current economic situation. However, Stockman disagrees and
points out several flaws in China’s economy, claiming that China is wrongly handling
their business. For example, there is a general decline in prices yet China continues
having a surplus of goods. This is evident from the excess of steel, solar,
cars and other goods. Stockman is worried that China’s economic situation will
flood over and also encompass the United States of America.
Stockman is not only worried about China’s economy affecting
our own, he is also worried about how Brazil will affect the U.S. Stockman also
uses Brazil as an example of the worldwide recession taking place. Brazil
citizens are facing mass unemployment and are currently experiencing its worst recession
in the last half century.
This article was easier to comprehend than the previously
assigned one. Stockman lays down his ideas and opinions very well. He sheds a
lot of light on how countries wellbeing can be linked with others. This is a nice
follow up from the previous article where we just saw how the U.S economy was
going, but now his readers we can see what’s going on internationally.
No comments:
Post a Comment