Why We’re Doing Better Than Europe

by Stuart Shapiro

Our economic recovery has been markedly stronger than much of Europe’s.  Conservatives would have you believe that it’s because of our free market policies.  But as with many issues, this denies reality.  Phillip Inman highlights the latest data from Great Britain:

Britain could be on course for its third recession in four years after the economy shrank 0.3% in the last three months of 2012.

The figures were worse than expected and could put pressure on the government to consider a “plan B” that would stimulate demand.

And that is Great Britain headed by conservative darling David Cameron,  who implemented an austerity program when he got elected.  Steve Benen notes the irony:

In fact, it was exactly two years ago this week when Sen. Jeff Sessions (R-Ala.) wrote an op-ed urging U.S. policymakers to follow the lead set by our friends across the pond: “We need a budget with a bold vision — like [the one] unveiled in Britain.”

Nope, we’ve bounced back because our government has continued to spend and stimulate the economy.  If that stops next month as the House Republicans want it to, so does the recovery.

By: Stuart Shapiro

Stuart is a professor and the Director of the Public Policy
program at the Bloustein School of Planning and Public Policy at Rutgers
University. He teaches economics and cost-benefit analysis and studies
regulation in the United States at both the federal and state levels.
Prior to coming to Rutgers, Stuart worked for five years at the Office
of Management and Budget in Washington under Presidents Clinton and
George W. Bush.