02/23/2011 02:07 am ET Updated May 25, 2011

Why Budget Cuts Don't Bring Prosperity


Remember the German economic boom of 2010?

Germany's economic growth surged in the middle of last year, causing commentators both there and here to proclaim that American stimulus had failed and German austerity had worked. Germany's announced budget cuts, the commentators said, had given private companies enough confidence in the government to begin spending their own money again.

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