From the Wall Street Journal's front page story about the success of German PM Angela Merkel's center-right coalition in the elections:
BERLIN -- A center-right alliance led by German Chancellor Angela Merkel was set for victory in Germany's national elections on Sunday, opening the door to modest tax cuts and labor-market changes that could help strengthen the fragile recovery in Germany's crisis-battered economy...
"For corporate Germany, this is a good signal," said Thorsten Polleit, economist at Barclays Capital in Frankfurt. "The FDP, which will feel very confident now, and much of the CDU will want to bring down government spending in order to cut income taxes."...
The center-right wants to cut income taxes and red tape holding back firms' investment and hiring, raising hopes among economists and business that Germany could improve its unsteady economic growth. But the perilous state of Germany's public finances, and public skepticism about free-market change, could limit a new government's scope for bold action.
So here's my question, as I ponder this story. There is a "fragile recovery in Germany's crisis-battered economy" currently, that would be "strengthened" by tax cuts and changes in labor red-tape. And the only concern is how hard those changes, that will strengthen Germany's economy, can be puched given the "perilous state of Germany's public finances."
Well, don't we have a "crisis-battered economy?" Don't we have a "perilous state" in our public finances? Why should the cure for our malady be the opposite? Instead, shouldn't Germany create huge new public spending programs, particularly for "shovel ready" projects and endless entitlements? Shouldn't they be raising taxes on the German "wealthy," ... wait, it's rescinding prior tax cuts, isn't it? Shouldn't they be doing more to "share the wealth?"
Oh, I see. Those solutions only work on this side of the Atlantic.
