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Bowyer: Why Europe Recovers Before the US
CNBC.com | September 24, 2009 | 01:40 PM EDT

“I will not let anyone tell me that we must spend more money."

- German Chancellor Angela Merkel, March 29th, 2009

America works even when it's tried in Western Europe, and the old world fails even when it's tried in North America.

This past spring, United Kingdom Prime Minister Gordon Brown and United States President Barack Obama attempted to launch a "global new deal." They attempted to persuade other developed countries, especially in the European Union, to embark on a coordinated program of very high stimulus spending. Angela Merkel led the opposition, issuing a resounding 'nein'. French President Nicholas Sarkozy added his 'non' to the chorus shortly thereafter. The rest is history. The Obama administration enacted a stupendously large spending program; the United Kingdom followed suit. The European Union resisted the clarion call of international Keynesianism and left the recovery largely to the private sector. And then, something fascinating happened: They recovered, and we did not. Some of these numbers are a little close to the line and clearly other factors were involved too: The US has had the largest stimulus so far, Britain after that, Germany slightly less than Britain and France much less.

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