Obama’s Brilliant Plan: Follow Europe – Which is Now Headed for Depression
As the Obama administration launches us on a path of European economic statism, Stratfor.com reports today that Europe is nearly headed for a depression.
Stratfor says that economic statistics released Friday show European economic growth declined by 2.5% in the first quarter of 2009 compared to the fourth quarter of 2008. If you project this rate of decline out over a year this would come to more than a 10% decline year over year – which is basically a depression.
Stratfor says:
"The country data for GDP growth rates in the first quarter of 2009 show that the European Commission’s annual forecast for 2009, published May 4, may have been too optimistic. This is extraordinary considering that the forecast was already quite dire to begin with . In fact, STRATFOR also may have been too optimistic about European economic performance, despite having had a consistently bearish outlook on the European economy. While we pointed out the underlying banking problems besetting Europe before they became apparent in September 2008, we may have understated just how long the recession had been going on."
The US growth decline was 1.6% in the first quarter of 2009 over the last quarter of 2008. (This compares to Europe’s 2.5%).
It should be obvious by now that European-style statist economics does not work and is not the way to bring the US out of recession. Having the government take over more and more sectors of the economy is the road to disaster, not relief. You really have to wonder what EVIDENCE does the Obama team see that would lead them to believe a heavy government hand in the economy will provide all the solutions. Do they look at the evidence, or do they just go by want they want to believe?