If you keep up with global economics and tend to read people who tend to be right, you should by now have noticed that Europe and America are intent on starving themselves into a repetition of the 1930s, supposedly to pacify the financial markets (yes, those financial markets).
I suspect what's really going on here is a perversion of a political trend that was originally a positive development: the voters preference for competence over ideology. For years now, the trend has been to elect politicians who aren't necessarily very exciting, but do seem to be able to achieve some real social improvements. Obama, Merkel, Sarkozy, Cameron (and Reinfeldt, closer to home) all ran on competence first and with the possible exception of Sarko they were also notably centrist (Obama's bipartisanship, Merkel's grand coalition wrangling, Cameron's and Reinfeldt's tack to the middle).
And competence is good, right. But right now, it seems that we've all arrived to the conclusion that the competent, responsible thing to do is to get national budgets back in balance. After all, we all saw what happened to Greece, and debt is pretty universally accepted to be a Bad Thing. Some voices protest that we still need spending to get out of the recession, but that sounds populist and a bit extreme. The competent thing to do here is surely to pay for all those past excesses with some good old belt-tightening.
Except it's not. I mean, really, really not. All serious, centrist economists with proven records are absolutely opposed to any form of austerity right now. The data shows that it won't work: the effect of drawing down government spending now will put budget balances far deeper into the red in the future by locking us into years or decades of little to no growth. The bond markets currently have no appetite for punishing budget deficits, nor has anyone found a reason to believe that austerity packages would signal anything but weakness to the financial market.
If there's anything to be done for the budget deficits, it's -- amazingly -- France who has it right in pushing for an increase in the retirement age and raising taxes on the rich, which will do long-term budget outlooks a world of good without shutting down growth in the short term. Amazing because France's government is by the looks of it the most clear-cut right-leaning one of the bunch.
Which brings us to the title and my amazement that the centre-left does not seem to have the slightest bit of appetite to take this on. Here we have a long line of centre-right governments who are about to let misguided ideology stand in the way of sound technocratic practice -- keep spending money to get employment up -- that would be good for both the economy and for the vast majority of lower- and middle-class workers. And the reason they give is that they're scared of the financial markets! And the centre-left completely bloody fails to call them on it!