First, the Dutch economy has been subject to some especially powerful country-specific shocks. An example is the exceptionally favourable housing market development in the nineteen-nineties, which had a positive effect on private consumption. Later on, consumption has been negatively affected by political developments, which reduced consumer confidence significantly.
A good deal of controversy has swirled around the question of whether increased federal borrowing reduces domestic investment, and presumably increases interest rates, or whether it increases U.S. borrowing from abroad. Viewed from a broader perspective, however, that distinction is probably not very consequential because future national income is lower in either case.