Erik Larson

Mar 30, 2009

The New Capitalists

European leaders are balking at Keynesian stimulus, to the degree that Obama has backed off his original plan to push this at the upcoming G20 sumit.

Did I miss something? In this country, the Neanderthal Republicans are sceptical of Keynesian stimulus, and Democrats — especially liberal Democrats — apparently think it’s settled that it works and that nothing else in times of recession will. Forget inflation, stagflation, or any other bugaboo. If you’re a liberal Democrat, this Keynesian spending stuff works.

So, what’s wrong with Europe? Why aren’t they buying fiscal stimulus? Really not buying it. Czech Prime Minister Topolanek called more spending right now “the road to hell”. French President Sarkozy and German Chancellor Merkel have explicitly rejected Obama’s call for more global spending. Their position is clear enough:

“…the problem is not about spending more, but putting in place a system of regulation so that the economic and financial catastrophe that the world is seeing does not reproduce itself.”

What are these European leaders, closet Capitalists? Sheesh. I wonder what Paul if-only-we-could-spend-even-more Krugman thinks of the Continent now. Neanderthals.

Read it here .