This week, the G-20 Leaders met in Pittsburgh to discuss the economic crisis for the third time in a year. Unfortunately, it was more of a symbolic meeting than an actual solution.
For those who don’t know, the G-20 is a group of leaders from 20 countries around the world who get together to discuss economic policies. These 20 countries comprise a huge portion of the world’s economy and population, so the G-20’s discussions and decisions have a big impact.
At their most recent meeting, Yahoo! News reports that they made several big decisions. The first was to keep stimulus plans, such as the one currently being carried out in the United States, in place. They decided to hold each other to a peer review process concerning their economic decisions, which is supposed to make sure that each member is doing what is right for everyone. They also decided to enforce stricter financial regulation, remove protectionist policies, and combat global warming economically.
While all of these ideas sound nice, the G-20 didn’t seem to think it was necessary to come up with actual policies or ways to regulate these decisions. For example, there is no actual requirement for participation in the peer review process. Even more irritating is the call for anti-protectionism, when the U.S. and China have both recently enacted protectionist policies against each other. Just last week, the United States placed a 35% tariff on Chinese car tires, and the Chinese government responded by placing a tariff on American chicken. It was a dumb move by both parties, since tariffs have been proven to do nothing except raise prices and make people angry at each other.
It’s nice that the G-20 decided to meet and make important decisions that would affect the world economy in a positive way. I think people would be a little bit more pleased if these leaders took the extra time to figure out how they were going to make these changes. The world economy is suffering a huge loss that needs immediate fixing. Now isn’t the time to take a break or make indefinite plans.
I could not agree more with your comments about the negative effects of Tariffs: China and the US have embarked on a tariff war with China which will ultimately foster animosity and elevate prices. To improve the GDP of both countries, Chinese and American governments must encourage spending but rising pricing more higher savings. Although America's buying binge is what led to economic collapse, some degree of spending must be done to recover from the global recession. Now, domestic products will have higher prices because foreign competitors will have less control over the market. For export led countries like China, the tariff war will be especially problematic.
ReplyDeleteRight Fringe; Devon Barone
Standard. The G20 is and always was nothing more than a symbolic meeting of the most powerful countries. I don't want to criticize these leaders' noble intentions and it should be noted that international meetings of this nature do further relations between different countries, but the decisions that are generally made are just idealistic pledges with no reinforcement or support. To truly make progress there needs to be accountability for actions and sanctions levied.
ReplyDeleteThe Deviant Press; SB
I agree with you that the world leaders should take more time at the G20 summit to come up with actually policies that can be implemented as opposed to wasting time merely discussing the current global economic situation. Nonetheless its a step in the right direction. National protectionist policies will not suffice. This is a GLOBAL recession and turning the corner will require the participation and compliance of the global economic powers of the world.
ReplyDelete