US Stimulus Plan Criticised Internationally

Reid Rosen

11/5/2010

Friday Posts

A BBC article reports that China, Germany and South America disagree with the US’s 600 billion dollars worth of Stimulus. The German finance Minister felt that the policies have been clueless and create extra problems for the world. South America says that the US’s decision to keep interest rate lows have caused the US dollar to be weak. This has hurt global imports and competition. The Chinese said that, “if the domestic policy is optimal policy for the United States alone, but at the same time it is not an optimal policy for the world, it may bring a lot of negative impact to the world.” Brazil voiced the same opinion that exports like Brazil will only be hurt from the stimulus.

I find this article to be interesting to me personally. As a business major I find it really interesting to see how the United States economy is recovering. The stimulus issue has been such a hot topic for a lot of Americans. Often when I read the newspaper or other news source if I see a article on the stimulus plan, I can’t help but read the article. Back on the subject of the article, I believe that our interest should be for the US economy before we try to keep the G20 countries happy. The real question should be what having this low of interest rates worth the 600 billion dollars worth of stimulus. The German Finance Minister does touch on this point, but the current performance of the market has shown that the stimulus is working. As a journalist writing about finance I imagine you would have to be extremely smart to be able to write and cover a confusing subject like global financing.