Tuesday, March 2, 2010
Recovery in Progress
"World trade is on the mend, but the strength of the rebound remains uncertain." Global trade volumes were on the rise in the 4th quarter of 2009, a revival is clearly underway, but to what extent remains to be seen. Despite the positive outlook, its not hard to see serious threats to the worlds economic recovery on the horizon. Global demand continues being anchored by the governments extravagant stimulus package. If mistimed, a stimulus withdrawal could spell disaster for the US economy. The article goes on to highlight the worlds changing export data, reflected in the major gains of emerging economies, specifically China's overtaking of Germany as the worlds largest exporter. Has the US stimulus package instilled a false sense of recovery in the American people? Information is often misleading, people must take the time to realize that not all growth is sustainable growth.
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I think this article also does a good job of indirectly describing the differences between intensive and extensive growth. While highlighting that all growth is not sustainable, it points out that some particular countries are just increasing inputs rather than increasing the productivity of their inputs to attain growth. Clearly, this article shows that it is important to not only increase your inputs in production, but also increase how efficiently you are using your existing inputs.
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