I think the economic policies of the industrialized Western European economies (except Britain) after WWII are a much better model for how the the West should revive their economies. Deficit spend till full employment, for example. Have an incomes policy and understand that strong and nearly universal unions are an element of that. Lead, protect and encourage industry into high-employment and international quality production. There is no re-invention involved.

An important understanding is that whatever is done you will not get the growth rates of Europe recovering from WWII or the U.S. without much competition in the 40s and 50s, or of China over the last decade. Mature economies don't grow very fast, they're not where 'the market' wants to invest. So governments of mature economies have to force that investment.

fairleft