Austerity has failed in the eurozone. This simple truth is grasped more widely than ever, including in the most unlikely places. Explaining its decision to downgrade the credit ratings of nine eurozone countries including France, Standard & Poor's - hitherto an advocate of extreme fiscal tightening - cited concerns over growth, not borrowing. "A reform process based on a pillar of fiscal austerity alone risks becoming self-defeating," it warned, "as domestic demand falls in line with consumers' rising concerns about job security." The lesson of the 1930s - that you can't cut your way out of a recession - is as true today as it was then.