Good example

The strength of Germany's economic performance over the last year stands in stark contrast to the weakness of America's "jobless recovery." That difference suggests that reducing deficits does not slow economic growth - and may help it.

The message from Germany takes on particular weight in light of warnings from Moody's Investor Services and Standard & Poor's rating agencies that the United States might lose its top credit rating as soon as two years from now if it does not take strong steps to reduce the deficit.

Germany posted the strongest economic growth in 20 years, its Gross Domestic Product rising at 3.6 percent in real terms and its unemployment falling to around 7 percent. That is a dramatic contrast to the U.S., which experienced slower economic growth and much higher unemployment in 2010.

Germany achieved its growth while keeping a tight rein on deficit spending, which never rose above 3.5 percent of GDP, while the U.S. borrowed large sums to "stimulate" the economy.

For the past two years, President Barack Obama has insisted that "only government can provide the short-term boost necessary to lift us from a recession this deep and severe." 

In contrast, German Chancellor Angela Merkel said, "We, the Europeans and the Germans in particular, think that reducing the deficits is indispensable for achieving sustainable growth."

Two years is not a lot of time to get our runaway budget under control. But we've been warned.

- The Post and Courier of Charleston, S.C.