Tuesday, April 2, 2013

Hey Europe – How’s That Austerity Program – The One That Would Bring Recovery and Prosperity – How’s That Going?

Oh, Not So Good

Europe and the United States diverged in their respective responses to the Great Recession.  The United States embarked on a program, highly flawed, of Keynesian stimulus.  The results while disappointing have been positive.  Unemployment has dropped, the deficit has declined and economic growth has returned.

In Europe the policy makers decided that austerity, an anti-Keynesian policy would work best.  The idea was that by getting government finances back towards a balanced budget business confidence would surge, business would invest and the economy would have a great recovery.  That hasn’t worked.


New York Times

Unemployment in Euro Zone Reaches a Record High

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