Getting out of recession

Much has been said about Keynsian economics recently. Keynes is the economist who proposed government spending on capital projects with borrowed money to boost economic activity. There is an important point point the Brown government missed, and that is, borrow to spend “on capital projects”. The coalition seems to be cutting back on spending shrinking the economy and still borrowing. Banks cannot be described as a capital project. Railways and coal mines can. I will explain in the next post.

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