I can spot a trend when I see one. Yesterday French voters said they're not going to take it anymore. Today, the Dutch prime minister is forced to resign when his coalition falls apart over budget talks. What happens next in Greece, Italy and Spain when they see that the northern countries that have compelled them to adopt austerity measures, are now rejecting such measures for themselves?
Maybe it's a good time to plan a European vacation, as the Euro continues to fall. In the long run, however, popular resistance to further austerity measures may be good for the European economy for the reasons explained in my prior posts. These developments also tend to vindicate the Obama administration's approach to crawling our way out of recession. The German plan--which is similar to the plan advocated by the Republicans in this country--of forcing deficit reductions in the teeth of a severe recession, is clearly not working. People just won't stand for it. And the people may be right.