The British Are Sending The US A Huge Warning
What's happening in the UK is contrary to the notion that we need to cut spending to create jobs. At least in the short term, austerity is painful and negative to the economy. The New York Times takes a big look at what's been happening:
But in Britain, one year into its own controversial austerity program to plug a gaping fiscal hole, the future is now. And for the moment, the early returns are less than promising. Retail sales plunged 3.5 percent in March, the sharpest monthly downturn in Britain in 15 years. And a new report by the Center for Economic and Business Research, an independent research group based here, forecasts that real household income will fall by 2 percent this year. That would make Britain’s income squeeze the worst for two consecutive years since the 1930s.
The article implies that somehow this news should or could inform the US debate, but we're pretty doubtful.