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Answer by Ricipedian
Posted
April 9, 2012 at 5:56pm
· Edited
April 9, 2012 at 6:48pm
Keynesian Economics
In June 2010, Krugman had this to say about deficit hawks like Germany [1]:
Many economists, myself included, regard this turn to austerity as a huge mistake. It raises memories of 1937, when F.D.R.’s premature attempt to balance the budget helped plunge a recovering economy back into severe recession. And here in Germany, a few scholars see parallels to the policies of Heinrich Brüning, the chancellor from 1930 to 1932, whose devotion to financial orthodoxy ended up sealing the doom of the Weimar Republic.
So let's compare the experience of the United States, where the Keynesians won out a with the massive TARP stimulus package, with that of the benighted Germans [2]:
Sources:
- "That 30's Feeling," The New York Times, June 17, 2010.
- John Lott and Grover Norquist, Debacle, 2012, p. 93.
Garrett Petersen: I like how the US part of the graph finally drops right around November 2010. Something big must have happened right around then...
JimGoneWild: I wish we could see the chart going back to 2005.
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