Indeed, the severity and prolonged nature of the present recession suggest that we should stop relying so heavily on market instruments to boost private-sector spending. Since consumers are not prepared to increase spending and businesses are not prepared to increase investment, the Government must increase its spending, and finance it by increases in taxation if necessary. It is time for a 'new deal' and there are plenty of worthwhile investment projects to spend the money on.
Head, The South West Economic Research Centre
Plymouth Business School
University of Plymouth
27 AugustReuse content