Sunday, Jan. 25, 2009
China
China's dramatic November announcement that it would spend four trillion yuan ($585 billion) stimulating its economy has set a standard — about 14% of GDP — that so far no other country has equaled. But there are still big questions about whether the spending is really anything new. China was already putting big bucks into infrastructure — what matters most to the global economy is whether it can find a way to get its consumers to spend too. One step in this direction is the government's just announced plan to spend $123 billion over the next three years to establish universal healthcare, which could encourage people to save less and spend more freely.