Or so says Paul Krugman. Maybe we should look at other countries in this recession to see how they have fared and how much they have spent. How about we look at Germany. From a balanced budget during 2007–2008, Germany has been running a deficit of only 3 percent of GDP during these tough times. So, with only modest stimulus compared to our deficit of 11 percent of GDP, what do you think has been happening to unemployment in that country? Keynesians would predict that it is worse in Germany than in the United States. If more spending really is the answer, clearly Germany is not spending enough. Both the United States and Germany had unemployment rates of about 8 percent at the beginning of 2009. Here, in the United States, the unemployment rate quickly rose up to a peak of 10 percent, and has remained at 9 percent ever since. Over in Germany, the unemployment rate hardly rose at all, and is now down to 7 percent. Keynes and Space Aliens - Clifford F. Thies - Mises Daily Who spent a lot? Greece. Hmm. Guess big spending is not the answer after all.