The siren song of austerity

TEN years and 10 months ago, then-US President Barack Obama announced in his 2010 State of the Union address that it was time for austerity.

"Families across the country are tightening their belts and making tough decisions," he said. "The federal government should do the same." Signalling his willingness to freeze government spending for three years, he argued: "Like any cash-strapped family, we will work within a budget to invest in what we need and sacrifice what we don't."

So great was the perceived need for austerity that he even vowed to "enforce this discipline by veto", just in case congressional Democrats had something else in mind.