The Brits are the latest country to dump the “spend your way to wealth” Obama-Pelosi prosperity plan. The Brits moved ahead with their austerity plan despite the recent letter from Obama urging G20 nations to continues to spend like drunken sailors.
The Wall Street Journal reported:
George Osborne presented the U.K. government’s emergency budget yesterday, with spending cuts and consumption-tax hikes intended to shrink public borrowing to 1.1% of GDP by 2016, down from 10.1% of GDP this year. Nearly 80% of that retrenchment comes as spending cuts rather than tax increases. The Chancellor of the Exchequer’s cuts are, on balance, good news for the British economy. Even more welcome, though, is that Mr. Osborne’s budget is the latest to depart from the short-lived Keynesian consensus that government can spend its way back to prosperity.
On Saturday German Chancellor Angela Merkel refuted Obama and also announced that spending cutbacks were needed.
