Should China and the U.S. Swap Stimulus Packages?

The US and China’s economies have been intertwined for a long time but the solutions they each have adopted to fight global recession are polar opposites. The author argues that in order to effectively grow the economy, they need to do opposite things. They both need rebalancing and should swap their own stimulus packages. The US needs to spend less and save more, while China should spend more and save less. The US is providing vast funding for "social safety net" programs which poor people in China really need and the government does not provide. China is focusing on infrastructure projects that the U.S. hasn't invested in a very long time. There is some infrastructure spending in the US, but not enough, to deliver any real solution. China needs to balance export growth with consumer spending. Real incomes need to grow for Chinese consumers and, in turn, they will spend more. The China Development Research Foundation advised China to spend $370 billion on social programs by 2012. It is a step forward. Both countries will need to look forward in order to get out of this economic meltdown. – YaleGlobal