We'll Just Have To See

Paul Krugman on Great Britain's austerity budget:

What happens now? Maybe Britain will get lucky, and something will come along to rescue the economy. But the best guess is that Britain in 2011 will look like Britain in 1931, or the United States in 1937, or Japan in 1997. That is, premature fiscal austerity will lead to a renewed economic slump. As always, those who refuse to learn from the past are doomed to repeat it.

The Keynes English

Focusing on Britain's drastic round of public sector job cuts, the New York Times predictably mourns European governments' abandonment of John Maynard Keynes' theory we can overspend our way out of recession. But the Times says nothing about the 300,000 private sector jobs the "Spectator" says the British economy has created this year. Did the Tory mag just make it up?

Blame The British

Reviewing Jonathan Schneer's new book about the Balfour Declaration, Great Britain's 1917 announcement that it would facilitate the creation of a Jewish homeland in Palestine (it came pretty close to being written on a cocktail napkin; see image at left), Tom Segev says that Israel's opponents consider it the "original sin" of the struggle between Israel and the Palestinians. I recently heard the same expression applied to Israel's occupation of the West Bank and Gaza after the 1967 war. As for God, while without sin, he was definitely being mischievous when he gave the same land to two peoples back in, oh, 3000 B.C. or so.

About England's move, Segev writes:

The Balfour declaration...finds its place among a multitude of fruitless schemes and indulgent fantasies, except, of course, that in this case, surprisingly, the British by and large kept their word. For at least two decades they allowed the Zionist movement to bring hundreds of thousands of Jewish immigrants into Palestine, and these new arrivals set up hundreds of settlements including several towns, as well as the political, economic, military and cultural infrastructure of the future state of Israel. But if Israel’s existence originated with the British, so did the Palestinians’ tragedy. The Balfour declaration was only the opening chapter of a still unfinished story.

We're All Keynesians? Naw.

When Great Britain and Germany opted for fiscal austerity instead of more deficit-ballooning stimulus measures, Paul Krugman warned of a global double-dip recession. He's been doubly refuted, since both countries are beginning to boom.

A Responsibility Agenda

Look homeward, David Brooks advises conservatives in the colonies:

In the U.S., the economic crisis has caused many to question capitalism. But Britain has discredited the center-left agenda with its unrelenting public spending, its public development agencies and disappointing public-private investment partnerships.

Osborne and David Cameron, the party leader, argue that Labour’s decision to centralize power has undermined personal and social responsibility. They are offering a responsibility agenda from top to bottom. Decentralize power so local elected bodies have responsibility. Structure social support to encourage responsible behavior and responsible spending.

If any Republican is looking for a way forward, start by doing what they’re doing across the Atlantic.