Posterous theme by Cory Watilo

Faking Economic Growth

"Thanks to the biased 'sciences'of forcasting, econometrics, and statistics, if you bomb a city and then rebuild it, the data will show a huge spike in economic growth." page 256-257

 

There are two sides to this statement made by John Perkin; one side suggests that only short term econmic growth can be achieve through this, the other show exampls like Germany and Japan as countries that have been bombed to the ground, rebuilt, and how become two huge economic powers.

There is also a catalist present in making these statistics; how important is that country and its resources to the United States. After World War II, The United States wanted to avoid another econmic collasp. They recognized Germany as being a key economy in Europe to keep stable, since it is right in the middle of Europe. They also wanted to avoid Germany becoming communist. In order to build up Germany's economy and stop the spread of communism the United States executed the Marshall Plan. The gave a sustantual amount of aid to Europe and rebuilt their economies.

Modern day Germany is one on the 8 largest econmies in the world. It is also miles ahead of all of its European competitors, being the best economy in the European Union.

The reverse of can be said of Vietnam though. The Vietnamise economy is struggling. The country lacks any resources that are important to the United States. The only reason the United States invaded the country was to "stop the spread of communism". The mass Hysteria created by the US government allowed them to gain support for the Invasion. Support was eventually lost though. After years of fighting, combined with a high casualty rate, the US people began to turn against the government'e efforts in the war.The US military eventually left the region and have sent a very small amount of aid to the devestated region.