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Show TheSalt Lake Tribune NATION/WORLD Friday, February 21, 1997 East|Meets Westzas U S. Copies Asian Economics DALLAS MORNING NEWS WASHINGTON — A formula for economic success: Invest in education and productive capaci- ty, keep government fiscally prudent and cautious aboutinterventions, and open the economyto exports and imports. The results of this combination sparklelike a string of Christmas lights across Asia — from Thailandto South Korea. It aiso glows in Chile and seems to be spreading to Argentina and Brazil The formula now has been ap- centers and highways, usually with the abundantcapital provid- ed by high household savings. petitive, mainly in exports but also byallowing imports to challenge home-grown brands. East Asian growth economies have been ruled by governments that aimat stability, avoiding ex- tremes of infiation and jobless- ne: ping their budget defi- cits small or running surpluses. istration to explain its optimism existed in the 1970s and 1980s. Those were decades when borrow and spend were wordsto live by for government and the private President Clinton’s Council of Economic Advisers has sent its annual review of the U.S. economy to Congress, and Asia’s poli- cies getlots of attention The report assembles the think- ing and recommendationsof Clinton’s White House economists led by outgoing leader Joseph Stiglitz. Despite its pedestrian ti- tle, the Economic Report of the President is a luminescent book. down-to-earth in its prose, encyclopedic in its topics Weighty chapters on an aging population and economic inequality are sprinkled with brief articles on «xecutive compensation and the shortcomings in govern- ment measures of inflation, income and productivity. The book's examination of the global economy summarizes how many Eas‘ Asian countries have managed growth rates of 6 percentor better for three decades They educated their children. boys and girl Theyinvested in factories and airports, research met with imports. ings there are, so we State of the Union address and his 11 et request, arein are borrow he Asian model ig the budget is the top ing from abroad to invest even more. The surest path to a lower vast improvement in or human capital tradedeficit, the council argues. is a balanced federal budget that frees morecapitalfor investment Clinton’s stated priorities for his second term, reflected in his Clinton continues to advocate trade liberalization in all directions — from the Caribbean to on the leader in quality contemporary upholstery THAYER COGGIN \__ [otf mig. suggested retail) This does not sound like a de- scription of the U.S. economy as it economic policies rates. Excess demand has to be Investments in U.S. productive capacity are soaking up what sav- Asia to Europe ingsincentive mula as well, a 2 boomers seem to c pu the savings r ate on the Finally, Cl Republican offered encourz least some compor men ents of mulahavebipartisar 1 SUPE is for ort They looked to global markets to make their domestic firms com- propriated by the Clinton admin- about the future of the U.S. economy and the rationale behindits household savings rates and consumer indebtedness that still characterize the U.S. economy. Stiglitz and his colleagues argue that the U.S. tradedeficit and lowsavings are part of the same circumstance. U.S. productive capacity is working near maximum ein a sofa that’s" Prim itd -your iat) i) Reta eltysirstel Petereesit : styled and crafied to’ last a Tt Pearce eee sector, and whentrade meantfear Highland Dr. Lerza) 2 andloathing of OPECoil and Japanese autos The Clinton years, by contrast. have seenthe U.S. economy move Park alb at Bias along a more Asian-like path, as much by consensus among the Paes cc-7072 publie and policy-makers as by “Mon:-Sat-40-6. political design The federal deficit has fallen by Baas) days-tame almost two-thirds — to $107 bil- lion last year. Investment in pro- ductive capacity has grown “a stunning 11 percent a year,” the reportstates, leading the way in the nation’s economic growth The second-leading element of growth has been exports, which have increased 7 percent a year. Inflation and unemployment have been so lowfor so long that the “misery index,” the sum of those twostatistics that was a political bogeyman for former Pres- as cash. and tu yesAig Design oi Seto Utah’s Largest Selection of Contemporary Furniture ident Carter, has droppedto lev- els not seen since the 1960s. The Asian-in-America model seemsto fall apart if you look at the ballooning trade deficits, low Town Presents Herd Ellis & Hank Jones Wed, February 26th, 8.00 pm Seasons Ballroom Salt Lake Hitton Timeis running out to create your own sale. Come in before March 3 and ask a sales associate for a coupon good for 25% off regular-priced purchases throughoutthe store. 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