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.

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Unemployment in Euro Zone Reaches a Record High

By DAVID JOLLY

Published: April 2, 2013

PARIS — Unemployment in the euro zone rose to yet another record high in the first two months of the year, official data showed Tuesday, providing confirmation that the economy remains in a deep freeze.

The jobless rate reached 12 percent in both January and February, the highest since the creation of the euro in 1999, Eurostat, the statistical agency of the European Union,reported from Luxembourg.

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But don't be discouraged, Europeans.  If the Republicans get control of economic policy they will be implemented the same failed programs that you folks did, and with the same results.  So in that case your misery will have companionship.