Europe’s austerity recession
If you want to see evidence about why Europe is going through a Debt Crisis. And how restructuring the Federal Governments there. Can improve the economies there by getting debt off of the Balance Sheets. And keeping Interest Rates down, just look at well Greece. Which has one of the largest Federal Governments in the World as far percentage of its GDP. They are getting bailed out by the International Monetary Fund and the European Union as well. Look at Italy, Spain and Portugal as well. That are headed in that direction and then look at Germany and Sweden. Not many countries that are growing in Europe right now but its biggest is doing. Better then America and has higher Economic and Job Growth. As well as a lower Unemployment Rate then us and they've restructured the Federal Government. And then look at Sweden a country of 9M people but with an economy of around 500B$, thats physically the size of Afghanistan. Imagine how large of an economy they would have, if they weren't so spread out. And they had 50-60M people, they spend 50% of its GDP on its Federal Government and have made savings and reformed its Welfare State.
The Socialist Utopia of Sweden has one of the highest Economic and Job Growth Rates in the World right now. But they've reformed its Welfare State and made savings in it. They've realized that perhaps its Federal Government was doing too much. And that Swedish People might need to do more for themselves. It took Swedish Conservatives coming to power there or what Conservatives look like in Sweden. They may look like Liberals in America but thats probably for another blog. For Sweden to figure out that its government was too big and taxing too much. But its economy is doing very well right now. Cutting Federal Budgets just to make savings in them, won't alone turn your economy around. People need money and incentive to spend, you need to try to create demand. Aa well as invest in things that can lead to Economic Growth like Public Infrastructure. But it can part of a package if done right, that can get you out of recession. And bring your debt down.
Britain is an example of austerity going wrong but in defense of the Cameron Government. They inherited a bad situation and perhaps have made it worse. I'm not as familiar with its Budget Cuts as I'm with Sweden and France. You shouldn't cut just to cut but to bring your debt and deficit down. While at the same time your investing in things that can lead to Economic Growth. Which is what the Clinton Administration did in America in the 1990s. And hopefully President Obama will adopt the same approach.