Thrifty China, Spendthrift America

And render to the kindred their due rights, as (also) to those in want, and to the wayfarer But squander not (your wealth) in the manner of a spendthrift.

And render to the kindred their due rights, as (also) to those in want, and to the wayfarer But squander not (your wealth) in the manner of a spendthrift.

And let not your hand be tied (like a miser) to your neck, nor stretch it forth to its utmost reach (like a spendthrift), so that you become blameworthy and in severe poverty.

And let not your hand be tied (like a miser) to your neck, nor stretch it forth to its utmost reach (like a spendthrift), so that you become blameworthy and in severe poverty.

China is running external surpluses because its saving exceeds its investment. The US is running external deficits because of a national savings shortfall, which once reflected spendthrift households but now is the fault of a feckless government.

With the weak dollar hanging like the sword of Damocles over the global economy, almost everyone laments America s spendthrift habits. But did it ever occur to anybody how hard Americans must work to make everyone else look good?

And give to the kindred his due and to the Miskin (poor) and to the wayfarer. But spend not wastefully (your wealth) in the manner of a spendthrift. Tafsir. At Tabari, Vol. 10, Page 158 (Verse 9 60) .

And give to the kindred his due and to the Miskin (poor) and to the wayfarer. But spend not wastefully (your wealth) in the manner of a spendthrift. Tafsir. At Tabari, Vol. 10, Page 158 (Verse 9 60) .

Those true believers argue that America s consumers can long pursue their spendthrift ways because their country s economy is better than everyone else s. The US labor market is more flexible than Europe s, enabling it to react more nimbly to the ever shifting sands of globalization.

It is thus a source of moral hazard, for it relieves pressure on spendthrift politicians to balance budgets and push ahead with reforms. In addition, it is seen as exposing the ECB s principal shareholders, notably Germany, to the risk of losses on their holdings of southern European bonds.

In the late seventeenth century, in the wake of Britain s Glorious Revolution, when Britain revolted against the spendthrift and autocratic Stuart dynasty, the British government that was formed after William and Mary assumed the throne adopted a new approach to debt. Voting budgets in parliament a representative institution ensured that the people as a whole were liable for the obligations incurred by their government.