Germany's Chancellor Angela Merkel said: “The crisis did not take place because we were spending too little but because we were spending too much to create growth that was not sustainable..."
In that article I noted:According to the IMF Germany’s stimulus amounted to 1.5% of GDP...
And he goes on to compare v. the US stimulus, which he calculates to be near 20% of GDP in actual "spend" plus various commitments (mostly the GSE lines/loans.)
In October 2009, Merkel's party, the Christian Democratic Union (CDU), a center-right party, with its political ally, the Free Democratic Party (FDP) and another Bavarian party, won the Bundestag (lower house) elections. The FDP are my kind of people, and they came in on a platform of lower taxes and cutting government spending.
...Germany is the world’s fourth largest economy, they are successful manufacturers and exporters, and their government’s deficit as a percentage of GDP in 2010 is expected to be about 5.5% versus about 10.1% in the U.S. Their fiscal stimulus was largely in the form of tax cuts rather than government spending.
So what? Here's what:
Read it and weep all you Keynesians (from today's WSJ):
Germany's economy is set to grow 3.4% this year as its recovery continues across almost all sectors, the government said Thursday in its updated forecast for this year. The growth forecast for 2011 is a more modest 1.8%.
The government's previous forecast in April predicted 1.4% growth this year, before Europe's largest economy posted a blistering 9% annualized rate of growth in the second quarter and other indicators, such as unemployment rates and business confidence, continued to suggest a more rapid rate of recovery.Granted the German economic structure is a bit different from the US'. And there are demographic differences, too.
But the Germans explicitly eschewed "Mo'Spend/Mo'Debt"--unlike the Socialists here--and are showing a helluvalot more economic progress than the Obama/Doyle bunch.
On to 11/2!!