You can compare those, because the large debts weren't caused by the "economic crisis". The fact that most Western nations also ran up debt doesn't mean the economic crisis caused the debt increase, only that they chose the same response to the economic crisis (which probably has more to do with increasing their own discretionary power than with lowering unemployment).
Singapore didn't run up huge levels of debt and has a much lower unemployment level than the countries that did run up debt. They could have chosen otherwise, but didn't.
Subscribe to RSS Feed
= f037147d6e6c911a85753b9abdedda8d)
Whether Singapore is considered "Western" or not is irrelevant. The disagreement was over whether the "economic crisis" forced the current US Government to run up large amount of debt. Singapore shows that not only is it possible to face a global economic crisis without running up large amounts of debt, but that doing so can leave you better off in terms of unemployment. And to claim that Singapore isn't a "developed" nation is quite strange. Singapore has a per capita GDP of $50,300, while the US only has a per capita GDP of $46,400, Germany has a per capita GDP of $34,200, and France has a per capita GDP of $32,800. Are you going to argue that the US, Germany, and France aren't fully developed?
The economic crisis only caused large debt increases if going out to eat everyday causes me to take on debt (because I refuse to cut back elsewhere in my budget). The fact remains that there were viable alternatives to multiplying the debt (alternatives that actually worked better in the case of Singapore).
The fact that Western nations listened to the economists that told them that current events justifies them increasing their own discretionary power and ability to give handouts to their allies instead of listening to economists that told them otherwise doesn't surprise me one bit.
I posted a link that showed Singapore had a budget deficit the very second their economy shrinked, in fact, the same thing happened in Western nations. Singapore didn't have to take a loan because thay had a national reserve.
So in fact the policy Singapore has is the same as Western nations, with the only difference that Singapore happened to have money saved. Singapore didn't want to cut spending to they used their savings. There's no real difference in policy, they even have a stimulus package.