ceddeeoo Wrote:So I actually ended up voting for Sarkozy on saturday because even though I was torn between the two and I do not like Sarkozy much as a person, I did not agree excessive spending and social policies would help dig us out of this current crisis. Yes you do have to spend to boost GDP and aggregate demand, but you also have to cut spending in many areas if you do not want to experience a hell hole of inflation.

Hmm, I'm conflicted on that. A lot say you can't save yourself out of a economic depression, you need to grow out of it. Governments need to spend in economic down cycles and save during economic peaks (at least that's what Keynes said). Unfortunately they usually spend during peaks.
I don't think inflation is a big problem right now, Europe needs growth.

Still, I'm not an economist, and even economists don't agree, so...

And I don't think Hollande will make such a big break with current policy as he made out to believe. I look forward to see how he's gonna deal with Merkel.