Newsweek has spoken.
The New Deal, FDR and bloated government are all the rage, as liberals, err, progressives, Kumbaya with their socialist idols in Europe. Reagan’s model for economic growth has led to economic failure, and last November, Americans voted for big government, for change. Completely ignored, however, is the ironic position staked out by the Italian and French President who look to cure the crisis by spurring growth.
They understand it, because they’ve lived it. Tax hikes and expansive government will only solve one problem: how to shrink the GDP. Last week, in the face of a couple million screaming communists, err, socialists, President Sarkozy stood strong.
This from Bloomberg:
French President Nicholas Sarkozy defied calls for more aid to consumers, saying his 26 billion- euro ($33 billion) plan to spur investment will cushion a deepening economic slump and increase productivity.
Sarkozy, who last week faced the biggest protests against his policies since his 2007 election, told a nationwide television audience late yesterday that he would cut a business tax by 8 billion euros next year, while he stuck to proposals to trim civil-service jobs and curb spending on hospitals.
Sarkozy’s television appearance last night, where he took questions from four journalists, marked his response to Jan. 29 demonstrations. The police said 1.1 million people protested, while Confederation Generale du Travail, the second-biggest French labor union, put the total at 2.5 million.
“I must listen to protesters,” Sarkozy said. “I also have to listen to all those who didn’t demonstrate, those who are working and who are suffering as well.”
A survey before the protests showed 55 percent wanted Sarkozy to press ahead with reforms, according to TNS Sofres, a Paris-based pollster that asked the question on Jan. 27-28.
In Italy, Berlusconi’s government is focused on providing incentives to consumers who buy anything from cars to furniture.
I’m not familiar with global bond markets, credit default swaps and other crucial factors in the current crisis. What I am familiar with is socialism, and despite the proclamation in this week’s Newsweek, a socialist, I am not. Liberals like Obama remain fixated on the Europolitics of the past, the Veltronis of the old continent. President Obama’s recent note to Veltroni, a ‘reformed’ communist opponent of Berlusconi, promised a continued friendship with the United States. One small problem. Veltroni isn’t the Italian Prime Minister. Conservative Berlusconi is, and he’s waiting to receive his first note…