The true threat to western employment and living standards is the rise of a globally competitive Asia, at a pace and with a power and penetration quite without precedent in history. No devaluation or indefinite deficit financing can conceivably be sufficient to price and equip ourselves to meet this challenge. Such evasions merely exacerbate our weaknesses and ensure our eventual eclipse.
Europeans and North Americans must tackle their deficiencies in productivity directly.
Erm, excuse me, but what deficiencies of productivity would these be?
We have vastly higher productivity per unit of labour, we have vastly higher total factor productivity, than those supposed \”competitors\” in Asia (who are not competitors anyway, they are complements, that\’s why we trade with them).
Their growth is actually based upon the point that their labour productivity is growing to something like (although still a long way behind) our own.
That\’s, umm, actually what economic growth is all about. Rising productivity.
So, err, what on earth are you talking about?