Stimulating the World Markets

China's dramatic November announcement that it would spend four trillion yuan ($585 billion) stimulating its economy has set a standard — about 14% of GDP — that so far no other country has equaled. But there are still big questions about whether the spending is really anything new. China was already putting big bucks into infrastructure — what matters most to the global economy is whether it can find a way to get its consumers to spend too. One step in this direction is the government's just announced plan to spend $123 billion over the next three years to establish universal healthcare, which could encourage people to save less and spend more freely.

See pictures of China's electronic waste village.

See pictures of the 2008 Olympic Games in Beijing.