In an interesting but expected outcome, countries who chose austerity over stimulus spending as the way to get through the recession and grow their economies are having a hard time of it and England has fallen back into recession. England's prime minister is under fire. There he was, on the cable defending himself in Parliament. An article in the Cincinnati Enquirer titled, 'Voters Rebelling Against Austerity', cited the trouble Governments all across Europe are having as they try to follow the path of austerity adopted by the European Union as the remedy for repairing an economy in recession.
The United States on the other hand, despite Republican calls to follow the path of austerity, chose increased government spending to stimulate the economy and begin healing from the recession. This has resulted in a slow but steady upward trend in the US economy and put us on a sustainable path to recovery. Republicans have fought the President on this all the way with no real justification for their position. Opposition and obstructionism have been the hallmarks of Republican leadership and have hurt the country's recovery and not helped it.
The citizens of the European Union are pushing back against the policy of austerity and are putting governments all across the Continent in jeopardy in the next elections. They want a change. They want to be led out of austerity and recession and are agitating and tossing out politicians who wont listen. Republicans facing a big election in 2012 have so far stuck to their guns on the theory of austerity as the way to economic recovery. I wonder how long they will hold that position as the American electorate becomes aware of the failure of Republican economic theory.
The argument was fierce and both sides, Republican and Democrat were sure of their positions. The evidence shows without a doubt that Democratic theory has proven correct. How long will it take for Republicans to give in and admit they were wrong, no telling. Americas recovery would certainly go faster if Republicans were able to swallow their pride and help rather than obstruct recovery policy. With the election looming, Republicans need to do things to create credibility with the voters. They need to remember, nobody likes a sore loser.