Down and Out

Mexican President Felipe Calderon announced plans to inject nearly $150 million to ailing industries in an effort to save jobs.  The move is part of a larger '25-point' plan that includes freezing gas prices and increased unemployment benefits, reports the BBC.  

Because 80% of Mexican exports go to America, and the dependence of many communities on remittances from Mexican laborers in the United States, the economic downturn here has had dramatic implications there.  

Plans for infrastructure building are expected to create another quarter-million jobs later in the year.    

"I Guess We're All Keynesians, Now."

In a move that seems to echo a global trend, the South Korean government has announced plans to invest $37.8 billion over the next four years in "eco-friendly" businesses -- an investment expected to create nearly one million jobs. This, following a five-year-low job creation rate in November and a generally slowing economy.

South Korea's "Green New Deal" is reflective of a much larger political-economic trend throughout the world. Many governments are planning big infrastructure investments and job creation projects to fight the sluggish world economy.

Obama's U.S. plan is close to $850 billion; $100 billion for state governments to cover Medicaid and other expenses; middle-class tax cuts; and further spending in five key areas -- traditional infrastructure, school construction, energy efficiency, broadband access and health IT.

China announced its largest ever stimulus package in November -- a $586 billion investment in ten key areas, among them low-income housing, electricity, water, rural infrastructure, environmental protection and technological innovation.

The EU announced a $260 billion plan around the same time. Many Latin American countries are following suit as well.

Here's a paper from Brookings on how to make these plans work.

And here's one from Heritage on why the best medicine is - you guessed it - less government spending.