RONLT (Readers Of No Left Turns) will note that I am a surveyor of Czech news and happenings. As of late, the news has been especially interesting. The Summer elections wrought a crushing defeat upon the Social Democrat - Communist partnership which had expected to seize power. Instead, a coalition of conservative, right-leaning parties swept into government by the largest majority in the Czech Republic's history. The right campaigned on an austerity message of fiscal sanity and stabilization through genuinely needed reform - but they had remained rather quiet for a few months as they built a government and planned.
They have now announced the means to their end. The 2011 state budget narrows the deficit by 17%, the public finance gap will be reduced to 2.9% by 2013 (from 5.9% in 2009) and, perhaps most dramatically, public sector wages and operating costs will be slashed by 10% next year.
The effects of this fiscal austerity policy (or, rather, mere expectations of such a policy) are tangible. The Czech koruna has gained 5.2% against the euro (which Czech has wisely declined to adopt) since the Summer elections, ranking the koruna as the world's third best-performing currency during the period. The S&P has raised Czech's standing from "stable" to "positive." And the public seems optimistic of the future.
Perhaps Czechs simply recall communism well enough to avoid its lures and snares (even in the guise of socialism - or "social democracy"). But by their example they are a city on a hill - visible, one should hope, even from the corridors of Washington. The Tea Party movement speaks to the relevance of their fiscal message here in America - if only we had a conservative, right-leaning political party with the courage to govern according to such principle. I think the result would be just as surprising - and rewarding - here in America as it has been in Czech.