Too many cuts will crash the economy  

To be clear, the worst global recession in my lifetime required extraordinary responses from governments and peoples all around the world. In part this meant spending more money nationally despite falling revenues and so of course borrowing went up. In each case where a national government could afford a “fiscal stimulus” this is what was done. In the UK, additional public spending brought work into a seriously depressed construction industry. It steadied a teetering car industry thanks to the scrappage scheme. And jobs were found for young people through the Future Jobs Fund. And the result? Lower unemployment than in the recession of the 1990′s even though the challenges in the 1990s were less severe. Similarly, home repossessions this time were at half the rate of the 1990s. This time, what we did was civilised, humane and affordable. Governments that took part –...