Why There Will be No Recession in the U.S.

The American economy is the engine of the world, so they say. So the world is watching it closely.

El Pais, a Spanish daily, seems to assert that good Keynesian American economics (a la “the deficit doesn’t matter”) will be just what the U.S. needs, and will get, to head off the recession, and comes close to suggesting that the Europeans should be taking a leaf out of the American book:

while Europeans and their central bank decide on orthodox, prudent economic policies in view of a slowing pace related to the control of inflation, Americans, once again Keynesians, will be recession-risk fighters. As Vice-president Cheney said, quoting Reagan, “the deficit doesn’t matter

And the piece offers an interesting statistic that should be sobering to Republicans everywhere:

In 1992, in a recessive environment, a quite unknown Bill Clinton won the battle for the White House against senior George Bush, the winner of the first Gulf war. According to a study made, on the four occasions on which the US economy entered a recession at the beginning of an electoral year (1920, 1932, 1960, and 1980) the incumbent party lost.

Could it really be that good pocket-book common sense trumps American voters’ pseudo-moral ideological positions on such things as gun rights, abortion, and all the rest of it? Let’s hope so. It would bear well for the nation.

Read “Why There Will be No Recession in the U.S.” on Watching America.com

H/T Watching America.com