Not only is the United States slouching toward a double dip, but so is Europe. New data out Tuesday show even Europe's strongest core economies -- Germany, France, and the Netherlands -- slowing to a crawl. We're on the cusp of a global recession. Policy makers be warned: Austerity is the wrong medicine.
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But chalk up a big part of Europe's slowdown to the politics and economics of austerity. Europe -- including Britain -- have turned John Maynard Keynes on his head. They've been cutting public spending just when they should be spending more to counteract slowing private spending.
The United States has been moving in the same bizarre direction. Cutbacks by state and local governments have all but negated the federal government's original stimulus, and no one in Washington is talking seriously about a second. The pitiful showdown over increasing the debt limit has produced the opposite: a Rube-Goldberg-like process for capping spending rather...