I can’t think of one issue more important for Americans to consider this fall than whether the country will follow Europe by voting for severe and crippling budget austerity—via Mitt Romney and a Republican Congress—and thus retard what economic growth there is.
I find it ironic that Romney and the Republicans, who have falsely accused Obama of wanting to Europeanize America, themselves want to follow the drastic European austerity plan to deal with accumulated debt. It turns out it is the GOP that wants to re-create America in Europe’s image.
On Thursday’s The Ed Show, Paul Krugman answered the following question posed by Ed Schultz:
So, we ought to be very aware and somewhat scared of the austerity measures based on what’s happening across the globe?
KRUGMAN: Oh, gosh! We’ve just done a massive—I would say massive—unethical human experiment in Europe. People said, “Slash government spending, good things will happen, confidence will come, it will grow the economy.” What’s actually happening is what’s happening in Greece and in Spain and in Ireland: Unemployment of more than 20%, unemployment among youth at more than 50%, collapsing political system in Greece, Spain probably next down that road. So, we’ve just seen that the type of policy that the current Republican majority in the House wants, we’ve just seen what they lead to in Europe and the answer is that they lead to catastrophe.
Here is the annualized first quarter grown rate for some notable countries. Japan’s growth rate is significantly attributable to the post-tsunami spending:
Here is the whole segment:
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