There’s more chatter today about the nascent recoveries in France and Germany, both registered positive GDP growth in Q2, though as Barry RItholtz points out you can have positive GDP in the middle of a recession. Q3 could turn up for us here, but we could head right back down.
Still, it is interesting, as Jeffrey Tucker points out, that Germany’s Angele Merkel was chided hard over her opposition to stimulus earlier this year. Folks thought she wasn’t a team player, simply because she didn’t want to go into debt to pay for spending. And yet, here they are with the same results as France.
Granted, they may still have benefited in some way from the actions of other countries, but it makes it even hard for Krugman to prove his non-disprovable statement about how big government saved us from another great depression. As we noted, we just have to take his word for it that the stimulus — which ostensibly has barely gotten started for us — has had such a big impact. There’s no way know for sure, and now this casts some doubt on whether it was even that big of a deal.
(picture via mdid)
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