In 2009 there were two options; Conservate leaders in Great Britain chose austerity to solve their economic woes and President Obama chose stimulus. The President made the decision to save GM, he sent money to the states so they wouldn’t have to lay-off teachers, police and firemen, while Great Britain cut spending, a wrong-headed Herbert Hoover decision that is coming back to bite them.
The prospect of another three months of decline, following Wednesday’s shock revelation that the UK has slipped into its first double-dip recession since 1975, will pile pressure on George Osborne, whose policies have so far failed to lift growth. According to the Office for National Statistics (ONS), the economy shrank 0.2pc in the first quarter of the year and is now roughly 0.2pc smaller than when the Chancellor unveiled his spending review in October 2010. Read more at the Telegraph
The Republicans love Herbert Hoover, they love to say that the federal government is like a household and it should balance its budget over everything else. It is not. The government is the buyer of last resort. In cases of economic contraction, the government can stimulate the economy and prevent prolonged economic slumps that Republicans in Congress will surely bring upon us. President Obama made the right decision, Republicans did not.
Keep in mind, corporations and the ultra-rich have gone on strike for Obama’s entire presidency. Their intransigence has meant that they are sitting on trillions of dollars in profits that could be used for even greater economic growth. Their hatred of the President has meant that the country, and you, are poorer.
It’s interesting that despite the evidence, Mitt Romney calls for even more draconian economic policies than they are pursuing in Great Britain. That’s just stupid.