Keynes vs. Hayek, and no one wins.

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OK, now here goes the potential story.  We did fiscal austerity, it was self-defeating, that was a major factor, and we ended up in…a better budget situation than we had been expecting?

via Have we seen self-defeating austerity in the United States?.

 

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Overstimulated

Yet influential people on both sides of the Atlantic heaped praise on the prophets of austerity, Mr. Cameron in particular, because the doctrine of expansionary austerity dovetailed with their ideological agendas.

via The Austerity Debacle. – NYTimes.com.

…merely spending more money that the government doesn’t have is hardly a solution in the absence of a broader plan, an inspiring vision, and a bigger narrative that explains how not only more spending but a rejiggering of budget priorities will help.

via Stimulus vs. Austerity: An Unsettled Debate.