Analysis and discussion of issues that impact business

In his blog for US News & World Report, Michael Barone tosses out some stats that seem to contradict the prevailing wisdom. Or at least the latest news story.

In 2005, as in 2004, the world economy grew by about 5 percent, according to the International Monetary Fund, and the IMF projects similar growth for several years to come. This is faster growth than in all but a few peak years in the 1980s and 1990s, and it's in vivid contrast to the long periods of stagnation or contraction in history. The great engine of this growth is, of course, the United States, which produces more than one fifth of world economic product and whose gross domestic product has been growing at around 4 percent--4.8 percent in the latest quarter. Other engines are China and India, each with about a sixth of the world's people, and with economic growth of 10 and 8 percent, respectively. But other areas are growing, too: eastern Europe (5 percent), Russia (6 percent), East Asia (5 percent), Latin America (4 percent), even the Middle East (6 percent) and sub-Saharan Africa (5.5 percent).

There's good news for lots of folks. But not for everyone.

For those who tend to think that all philosophies were created equal, you might want to think that over.

Lagging behind is the euro area (1 percent) and the rest of western Europe (2 percent). Lesson: Sclerotic welfare states produce mass unemployment and stifle initiative and innovation. In contrast, the Chinese and Indian growth rates show how freeing up an economy produces rapid growth, and the continued contrast between the United States and Europe makes the same point. Free-market economic growth is enabling millions of people to rise out of poverty every year, even more than the experts expect. As the IMF writes, "The momentum and resilience of the global economy in 2005 continued to exceed expectations."

So, even if your business is struggling for one reason or another, be thankful for where you operate that business. The world seems to be benefitting from maybe our greatest export: The free market.