Remember what bird flu did to the Asian economy

Keynesian Effect
Following John Maynard Keynes, many economists recommend deficit spending to moderate or end a recession, especially a severe one. WHEN THE ECONOMY HAS HIGH UNEMPLOYMENT, an increase in government purchases creates a market for business output, creating income and encouraging increases in consumer spending, which creates further increases in the demand for business output.

High world unemployment figures encourage fiscal spending creating deficit, encouraging world governments to borrow from themselves and other governments also in deficit creatiing further deficit.


MONEY MONEY MONEY
BORROW BORROW BORROW
STEAL FROM FUTURE
MORE MORE MORE
RICHER GET RICHER
RICH GET POOR
POOR GET POORER
MORE MORE MORE

In Mexico a nationwide five-day shutdown of non-essential businesses and services has begun in a bid to halt the spread of the swine flu.

While Mexico's authorities are reporting that the rate of infection is now slowing, government offices, factories and shops are obeying a presidential decree to close.
www.abc.net.au...

Mexican officials fear that by shutting down businesses and scaring tourists away, the disease will deal a crushing blow to the country’s already battered economy.

Finance Minister Agustin Carstens said recent improvements to the nation’s flu surveillance system led officials to notice the swine flu outbreak, when just a few years ago it would have been lost among the sea of routine sicknesses
www.nytimes.com...


The World Bank has set aside $25m for Mexico in immediate aid to buy medicine to battle the swine flu. It also has the cushion of a $47 billion precautionary line of credit with the IMF.

The Inter-American Development Bank will lend the country $3 billion to combat the flu and the economic crisis.

One estimate suggests that, as a result, the city’s retail and service industries are losing at least $55m a day.

www.economist.com...

[edit on 2-5-2009 by meaguire]