As the political campaign season intensifies in the United States, analysts agree the economy will be the most significant issue. The debate is dominated by the conflicting merits of austerity and expansion.
Meanwhile, across the Atlantic, numerous signals illustrate the negative consequences of practicing austerity in the middle of a weak economic recovery.
Last week, the economy of Great Britain again fell into recession, while the Spanish economy is in its second recession in three years. The Spanish government revealed that overall unemployment reached 24.4 percent, while unemployment is over 50 percent for people ages 16-24.
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In the Netherlands, failure to gain approval in parliament of an economic package of fiscal austerity led to the collapse of the Dutch government. The Netherlands is Germany's closest ally in demanding austerity from eurozone governments.
In France, President Nicolas Sarkozy's bid for reelection was challenged in the first round by Socialist candidate Francois Hollande, who proposes economic growth policies instead of more austerity.
Finally, the eurozone as a whole experienced an economic contraction during the last quarter of 2011, while eight of its 17 members are in recession.
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On this side of the Atlantic, by contrast, the Department of Commerce said the U.S. economy grew 2.2 percent during this year's first quarter, down from 3 percent during the last quarter of 2011.
With the U.S. economic recovery remaining modest, austerity is not advisable in the short run.
