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The article Head up, Seven Up was focused on the finance ministers from seven industrialized nations who were meeting in Paris this weekend to discuss ways to improve world economic growth.

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Introduction

Title: Heads Up, Seven Up Author: David Malpass Source: The Wall Street Journal Summary The article Head up, Seven Up was focused on the finance ministers from seven industrialized nations who were meeting in Paris this weekend to discuss ways to improve world economic growth. This meeting is commonly referred to as the G7. The article stated that the U.S.'s value-oriented economic growth package was a key topic during the State of the Union address and will also be addressed during the G-7 meeting. The war of terrorism was another topic discussed. The group thought that it is important to encourage developing countries to grow faster in the coming years to discourage terrorism among its people. The American economy has been growing steadily and as a result it grew 2.8% in 2002. January's retail sales, commodity prices, and industrial production were all strong suggestion the economy will continue to grow in 2003. The new tax cut package which eliminates double taxation of dividends is also expected to add to the economic growth in 2004. The group felt that America's strong economic position required them to "project more vision and economic leadership abroad." In response the U.S. felt that much of world growth depends on "sweeping growth-oriented IMF reform." But, ultimately the IMF controls economic standards around the world and in the past the U.S. ...read more.

Middle

As an American I found the article to be discriminatory because it put America on a pedestal and blamed some of the world economic problems on us. But, the article also stated that America favorable economic position required them to set and example for the rest of the world to follow. I agree with this and think the U.S. must adjust their policies accordingly. The article did not mention the implications the meetings have on the rest of the world. By looking into the text I discovered that many of the decision from the meetings have little value and are disregarded. But, the article did end with and interesting point and stated that the G7 meetings are simply just a starting point and a way in which to establish the foundation. The article put a lot of emphasis on the American economy especially the new tax plan. Many feel that the new tax plan would spark a stagnant American economy. However, the G7 meeting acknowledges that the U.S. economy has been growing steadily while others are falling behind. They feel this new tax plan will give America an unfair advantage but, as an American who pays taxes I feel that the tax plan is a good thing that meets American's need for lower taxes and would not expect anything less. ...read more.

Conclusion

friends like Turkey, Indonesia, and Pakistan. They suffer impoverishment, with the U.S. getting much of the blame due to our supposed control of the IMF. Among the countries in need, Latin America deserves special attention. Argentina's debt crisis is festering. IMF-related tax riots and 29 deaths scarred Bolivia last week. Apart from Mexico, most of Latin America is closed off from world capital markets. The IMF's standard program of currency volatility repels capital inflows and means high interest rates across the region. With the added prescription of high tax rates, investment and trade liberalization are unlikely. Sound money and trade liberalization can also be a growth-oriented alternative for the countries that French President Jacques Chirac has threatened to keep out of the European Union. For pro-U.S. countries in Eastern Europe, including Turkey, to whip their own economies into shape would ultimately offer more economic benefits than joining the E.U. Another topic certain to be discussed at the G7 meeting is Japan's malaise. In 2002, Japan suffered record deflation. Its GDP shrank to less than $4 trillion. The standard message of structural reforms fails the tests for boldness and effectiveness. This year, the G7 has an opportunity to send an unusually clear message to Japan -- use a stimulative monetary policy to end deflationary expectations -- building on Alan Greenspan's unequivocal December speech about a central bank's power to stop deflation. Article Hyperlink http://online.wsj.com/article/0,,SB1045791353873025103,,00.html ...read more.

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