Likewise, the growth in American jobs may be difficult to sustain given the implications of the global hiring hall. There is always a place for altruism, but there should be no misunderstanding that self-interest demands we bring stability back to Asia. No scenario could be worse than to have competitive currency devaluations matched by the erection of new tariff and non-tariff barriers to a free flow of goods and services. The best answer to problems of managed capitalism is freer markets. Countries cannot simply export their way out of this crisis.
Systemic change is needed.
From the U.S. perspective, significant direct foreign aid would appear inappropriate and in any case lacking in public support. Reliance on international institutions would appear preferable to exclusive dependence on the U.S. taxpayer, but it is key that public monies, whether from international institutions or our Treasury, do not simply replace private liabilities. What Asia needs is a good dose of Teddy Roosevelt trust-busting, the elimination of the crony capitalism that hallmarks so many developing countries. America must lead, economically as well as politically. Doing nothing is an error, just as doing too much is likely to be foolhardy.