 AP |
Barack Obama and David Cameron both have various reputations when it comes to spending and deficits.
Obama is known as a free-spender who doesn't care bout reducing the deficit.
David Cameron is known for committing to austerity, even in the face of a weak economy.
And yet actual numbers show that when it comes to reducing the deficit, the U.S. is better at it. AND the U.S. is on a better trajectory on this measure.
And yet check out these stats from CNBC's Kelly Evans.
UK's revised f'cast sees *7.4%* deficit this fiscal year -- up 0.6pp since Dec. Meantime CBO projects 5.3% deficit this year for the US.
— Kelly Evans (@Kelly_Evans) March 20, 2013
From same starting point (76% this fiscal yr), UK debt now seen rising to 85% of gdp by fiscal 2018; US seen falling to 73%, per CBO.
— Kelly Evans (@Kelly_Evans) March 20, 2013
This is, of course, all predictable to anyone who has read Richard Koo, who has pointed out numerous times that during the great Japanese downturn, periods of austerity led to weaker growth and higher deficits.
This chart is particularly powerful.
