Anybody who still believes in Keynesian economics – and is therefore unduly worried about the UK’s public spending cuts – should take a look at Germany and America. The former, which at the height of the recession rejected demands by Gordon Brown to spend uncontrollably, is booming. The latter, under arch-Keynesian Barack Obama, is under-performing severely, despite (or because of) its massive budget deficit. Ever larger amounts of state spending is the problem – not the solution.
