Governments must learn to live within their means. Wasteful government expenditure must be eradicated. Voters in the US and Western Europe must learn to accept lower living standards. Unfortunately living standards are supported by massive borrowing splurges. The time has come to shout stop. Stimulus packages-funded by foreign borrowing- may give a temporary boost, but will quickly run out of steam if the economic fundamentals are not sound.
Their impact is similar to the effects of the quick fix on a drug addict.
Governments in the US and Western Europe must pursue sound fiscal and monetary policies over the short and long term. Quite frankly printing money is not the solution. Increasingly taxpayer revolts will become the norm if the massive government expenditure problem is not tackled. We must learn to live within our means. We cannot have the government services that we require unless the economy generates the financial resources to pay for these services. High levels of individual taxation stultify effort and are ultimately self -defeating.
Even the Russians and Chinese have learned this lesson.