Austerity vs. more stimulus is the ongoing debate plaguing policymakers around the globe as countries try to figure out ways to eliminate rising government debt without creating an economic catastrophe.
Europe took to the path of austerity and it did not go well for the eurozone economies, which have tipped back into recession. In fact, things have gotten so bad in Europe that voters in France and Greece this weekend ousted leadership who agreed to the austerity programs proposed by the European Central Bank and the International Monetary Fund. (See: France's Hollande Is "Bluffing" But Greek Vote Raises Real Concern: Kirkegaard)
In the United States, political ideologies have stalled any progress on the federal budget and efforts to reduce the country's $15.7 trillion (and growing) debt load. Washington's dysfunctional politics is what led to the country losing its triple-A debt rating last August —rating agency S&P actually feared politicalRead More »from Austerity or Stimulus? Americans Want BOTH, Survey Says