Abandoning Austerity a Mistake (Townhall.com) May 16, 2012

Voters in Greece and France have ousted leaders who pursued economic austerity, but why? Is it because the alternative—economic stimulus—has worked so well elsewhere? Or because they lack the patience and character to see through a program of spending cuts and debt reduction?

Ironically, two other European countries, Germany and Sweden, have pursued austerity successfully and gained stability and growth. The problem in countries like Greece and Spain—and, to some degree France—is that they started so deeply in a fiscal hole that their austerity measures were not enough.

Increasing government spending and debt has done very little for the U.S. economy short-term, and has kept a lid on long-term growth. It’s always easy to vote out leaders who administer tough medicine, but the world economy is likely to pay a high price.

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