Why Democracy Is Horrible If Your Economy Is In A Recession

Congress Photo on steps

Photo: AP Images

In his interview on China, Richard Koo explained that the country would implement aggressive fiscal stimulus to offset a housing bust.He also expanded on a broader point, which is that in a democracy (like Japan or the US or the UK) you can’t engage in too much fiscal stimulus, because if one party is for it, then another party is against it.

As he put it: China doesn’t have that “problem” so when it needs more spending, it will get more spending.

For more on Koo’s comments, see here.

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