Remember all those conservatives that touted “expansionary austerity” and cited Germany and England as alternatives to the Keynesian model for getting out of this global recession? It’s funny that you don’t hear about that as often anymore.
Ok, so Germany didn’t try to cut their way to expansion, but the UK did. What happened with them?
Oh. They’re doing worse than us. From Martin Sullivan:
After three and a half years, U.S. GDP is just about returning to the pre-recession peak. That’s awful. But it s far better than the U.K. where GDP is still five percent ($750 billion in US terms) below its pre-recession peak.
You might be hearing less about the success of austerity economies. But if you do, you’ll know the facts.
(h/t Brad DeLong)