![The stimulus worked in the US. Fiscal retrenchment in Britain has clearly not yet led to new growth.
“Republicans constantly remind us that the Obama stimulus—the American Recovery and Reinvestment Act of 2009—did not work. They voted against it. In the United Kingdom the government is led by Conservative Prime Minister David Cameron. His government did not adopt stimulus. Instead it boldly enacted an economic program that cut spending and raised taxes.
The chart [above] shows the results and compares it to the U.S. experience. After three and a half years, U.S. GDP is just about returning to the pre-recession peak. That’s awful. But it is far better than the U.K. where GDP is still five percent ($750 billion in US terms) below its pre-recession peak.”](http://25.media.tumblr.com/tumblr_ltsk4hGy5I1qzsnxyo1_1280.gif)
The stimulus worked in the US. Fiscal retrenchment in Britain has clearly not yet led to new growth.
“Republicans constantly remind us that the Obama stimulus—the American Recovery and Reinvestment Act of 2009—did not work. They voted against it. In the United Kingdom the government is led by Conservative Prime Minister David Cameron. His government did not adopt stimulus. Instead it boldly enacted an economic program that cut spending and raised taxes.
The chart [above] shows the results and compares it to the U.S. experience. After three and a half years, U.S. GDP is just about returning to the pre-recession peak. That’s awful. But it is far better than the U.K. where GDP is still five percent ($750 billion in US terms) below its pre-recession peak.”
