Interesting to hear an American CEO saying that the workings of a communist dictatorship are more efficient than the workings of liberal democratic capitalism, but that’s what Freescale CEO Rich Beyer reckons.
“It’s the beauty of a centralised economy”, says Beyer, “all they have to do is decide to do something and next week you get the money flowing. With the China stimulus package, it’s the speed of execution which makes the difference.”
Since China announced its stimulus, the effects have been remarkable. Bank lending grew 30% in Q109, the Shanghai stock exchange is up 35% this year, the property market is up 30% and Q1 car sales grew 4%.
“We don’t do it that efficiently in the USA, nor, I suspect are you that efficient in Europe either, but in China, within a couple of weeks of their stimulus package being announced, people had started ordering product,” says Beyer, “in the US the stimulus has been approved but it’s taking time to spend the money in a way that that’s bringing it into companies and into job creation.”
So that’s it. All we have to do is parade a few bank CEOs around Wembley football stadium, shoot them, and the money should start flowing pronto.