Great news y’all (may as well get in the spirit of this post) America has seen its fifth consecutive month of falling unemployment; down by 8.5% to 8.3% with 243,000 jobs being created. Coupled with growth figures from last week showing a rise of 2.8% in GDP in the final quarter of 2011 (1% higher growth on the previous quarter) it’s becoming increasingly apparent that America’s strategy of economic stimulus is comparatively buoyant when next to Europe’s strategy of austerity. Yes, unemployment levels are higher than here in the UK (for now at least), but that’s primarily because of the USA’s private sector economy focus (when compared to our economy at least) and some of the weakest employment protection laws in the world.
What is beginning to emerge is that Europe’s (and more specifically, the UK’s) austerity programmes are not working. If you make too harsh a cuts to the public sector you’ll also damage the private sector as numerous contracts are arranged between the two sectors. That’s right, they’re intertwined, you attack one part too harshly it will have a knock on effect on the other.
It is hugely unlikely Cameron, Clegg and Osborne will take notice of Obama’s successes. But at least the American people hopefully will this November.