"Austerity Will Work! Wrong."

Borrowing a graph from Krugman, I think staging the United State's recovery versus the United Kingdom's gives us an interesting comparison of liberal versus conservative fiscal policy.

US vs UK recovery

Krugman says it best:

Osborne’s big idea was that Britain should turn to fiscal austerity now now now, even though the economy remained deeply depressed; it would all work out, he insisted, because the confidence fairy would come to the rescue. Never mind those whining Keynesians who said that premature austerity would send Britain into a double-dip recession.

Strange to say, Britain’s recovery stalled soon after Cameron/Osborne began their new policies, and the country is now in a double-dip recession.

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