Monday, November 15, 2010

Learning from Japan

RealClearPolitics - Learning From Japan's Mistakes

Just as I indicated in the '80s when EVERYONE wanted to "be like Japan" that the US is NOT Japan, that advice still holds. One need not completely ignore examples however. I especially like the last paragraph ... some truth is universal, and I think that private firms, making economic decisions with a minimum of government interference or creation of uncertainty is a the base of any successful economic policy.

Economic success ultimately depends on private firms. The American economy is more resilient and flexible than Japan's. But that's a low standard. Neither the White House nor Congress seems to understand that growing regulatory burdens and policy uncertainties undermine business confidence and the willingness to expand. Unless that changes, our mediocre recovery may mimic Japan's.

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