Sorry it’s a bit long.
Many believe that public spending cuts will lead to higher unemployment, which is what happened in the early eighties. This is counter-productive to economic recovery, as it means an increased drain on resources and a general feeling of unease amongst consumers. New Labour conceded that cuts need to be made and will at some point, though not as quickly as the new government is planning. David Cameron (cleverly) sought to distance himself from the Thatcher years by suggesting public spending cuts would be more measured than under Thatcher. In reality I think his cuts will be greater, and have a worse effect. He has commented that the situation now is much more serious than during the Thatcher years, suggesting he intends to go further than her administration in trying to slash public deficit. This article talks about the dangers of cuts in public spending in relation to economic recovery: namely that the public deficit is necessary for increased tax revenues.
The bottom line seems to be that both Gordon Brown and David Cameron have ‘spun’ themselves so far from the party line in an attempt to win over voters, that there is considerable confusion over their policies on public spending cuts. Is Gordon Brown really centre-left? Possibly, but not as centre-left as Tony Blair was. Is David Cameron really going to lead the Conservatives toward a more liberal political territory? Dear me no, but he’d like us to think it, and now he’s made a deal with the Lib Dems he can certainly claim on the surface to be more progressive.
To me, it’s a no-brainer: New Labour seemed to offer a glimmer of hope, where a Con-Lib government would seem to spell disaster for our economy.
As for the US, I agree with @marinelife that it appears your average American had it better historically under a Democratic government than they ever did with the Republicans in power. My husband agrees.