
James A. Dorn
SPECIAL REPORT—Emerging markets continue to grow considerably faster than the United States. And Developing Asia’s economic growth is stronger than other regions. In fact, it is anticipated to achieve a GDP growth rate of 7.1 percent this year and 7.7 percent by 2018, according to IMF data. Much of Developing Asia’s relatively strong performance today is based on its past efforts in lowering tariff levels and successfully integrating with world markets.
SPECIAL REPORT—Over the last decade, much of Latin American growth was supported by strong international demand, especially for natural resources and minerals. And over time, China became a more important commodity customer, which boosted world prices. However, as the global economy has slowed in recent years, Chinese demand for natural resources also has decreased, while the value of commodities has fallen. This has negatively affected Latin American exports and economic growth.
Monthly U.S. headlines trumpeting the death of inflation hide a painful truth for American families: rapidly rising food prices. News reports rarely mention this pain because economists’ preferred inflation metric, so-called “core CPI,” omits both food and energy due to concerns about their volatility. Although this omission might make sense from a purely economic perspective, it does a disservice to voters.
Comparisons almost always cause resentment. The French political philosopher Jean-Jacques Rousseau argued that when humans lived alone in the state of nature, they were happy with their lot and needed only their own self-approval. But the move to society, living cheek by jowl with others, invited precisely those comparisons with others that creates ill-will, envy and jealousy.
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