It’s no surprise that European caution versus U.S. drive toward stimulus strategies is the main theme of President Obama’s eight-day trip. The Associated Press notes that “Europeans look to welfare, not stimulus, in crisis“. Excerpts:
Across a continent long accustomed to big government and high taxes, many Europeans are counting on generous welfare benefits to shield them from the worst of the meltdown. Others worry that loosening interest rates would lead to devastating inflation.
In the American view, the economic house is on fire, and only quick and decisive action will put out the flames. Europe is not quite as ready to pull the alarm.
For all their talk of coming together at this week’s summit of the G-20 economic powers in London, European leaders have been openly skeptical of corporate bailouts and massive U.S.-style stimulus spending.