The big economic question in much of the world today is usually framed as the fight between advocates of austerity and advocates of growth. But another way to view the debate is as a contest between those who think that 21st-century government can be effective and those who don’t.
The world, particularly the world economy, is pretty vulnerable at the moment. The recent French and Greek elections, and Germany’s unpredictable response to their results, have again raised the specter of a crisis in the euro zone that Robert Rubin, a former secretary of the U.S. Treasury, told me this week could be far worse than the bankruptcy of Lehman Brothers in 2008. Nor is everything fine in the United States, where disappointing job numbers for April have set off fears that the economic recovery may be weakening.