Cherry picking in the debate on economic policy

[buritobr]

South Korea
Right: South Korea had a fast growing economy because comparing to other developing countries, South Korea had low government spending/GDP, small social safety net, no deficit, low inflation, wages that didn1t grow more than the productivity and a export-led development strategy. South Korea didn't have populist governments like the ones in Latin America.
Left: South Korea had a fast growing economy because the country didn't follow a free market capitalism, but a state capitalism. Government planning was very important. Like the neighbor in the north, South Korea had five year plans. Government made credit policies focused on strategic industries. In the early stages of development, exchange rate was kept undervalued in order to avoid specialization on exports of primary goods. Multinational enterprises were banned in high technology industries, that's why Samsung and Hyundai were supported by the government. There were heavy investment on education and land reform.

Sweden
Right: The GDP growth rates in Sweden were low in the 1980s. Than, the countries made reforms in order to reduce its big welfare state. After that, Sweden had high GDP growth rates.
Left: Even after the reforms, Sweden still had a big welfare state than other countries, and even though, had high GDP growth rates. So, economies with big welfare states can also work very well.

USA
Right: USA recovered better than many European countries after the crisis of 2008 because the USA has a more flexible labor market and lower taxes / GDP than European countries. Republican control of the Congress avoided Obama's populism.
Left: USA recovered better than many European countries after the crisis of 2008 because Obama made a stimulus plan, while many European countries trusted in austerity. The american recovery would be better if the stimulus plan were more ambitious and if the Republicans in the Congress did no harm.

Germany
Right: Germany had the best recovery in Europe because Merkel trusted in austerity. Germany has a very low deficit/GDP comparing to other European countries.
Left: Germany had the best recovery in Europe because it was the country that made the biggest countercyclical policy. Germany has a low deficit/GDP but had zero deficit/GDP before the crisis. Germany had room to increase the deficit during the crisis, while other countries decreased. The countries who decreased the deficit during the crisis were the worst performing economies: Spain and Greece.

UK
Right: Cameron's austerity worked very well. British economy is doing very well.
Left: UK had high GDP growth rates in 2014 and 2015 because the base is low, since it is recovering from the depression. Comparing 2015 to 2007, UK did not have a very good performance.

[Simfan34]

Interesting. Where do you plan on going with this?