Concerns over Budget Spending and Sensible Policy Choice

Many countries have intervened and undertaken massive stimulus efforts. Yet concerns over a sustainable fiscal track remain, as many countries face deficit conundrum. Some countries are facing even default risk.

The bottom line would be: how is each country spending its stimulus money and whom does the economy serve?

Those who use the massive amount of stimulus money productively (e.g., investing in robust economic and job growth), instead of being diverted to endless bailouts and other useless spending, would head for a solid economic recovery.

History has taught us that excessive government interventions including stimulus measures could distort the whole supply and demand balance and generate the intended and unintended consequences. Simply put, they do more harm than good

Any country should opt for short term pain for long term gain. And yet, would internal political dynamics allow that to happen?

When a political system of a country is corrupt, which is manifested in public policies to serve the special interests, the global forces could easily wipe out a nation’s economic fundamentals. The U.S. is a case in point.