Government to spend its way out of credit crunch

October 21st, 2008 | by abigail |

UK Prime minister or (Sub Prime minister as he was called this week), Gordon Brown and his bushy eyebrowed sidekick the UK Chancellor Alistair Darling are to bring forward projects and spend the UK out of recession, they are planning to build more roads, schools and hospitals to get the UK Economy back on track.

Although the UK’s national debt is way over target at 37 Billion Pounds, Gordon Brown and Alistair Darling think the way forward is with yet more borrowing so they can get the economy moving, they argue that spending the money by bringing planned projects forward will boost the economy and if they don’t spend it the effects of the credit crunch will be even worse.

Many economists warn the countries current debt situation is dire and possibly one of the worst reccessions ever now looms.

What do you think?

  1. 2 Responses to “Government to spend its way out of credit crunch”

  2. By Barry Gleeson on Nov 18, 2008 | Reply

    Using the Chancellor’s convoluted logic, if I planned to buy a property in the Canary Islands in 2010. I ought to buy it now. I haven’t got the money to pay for it, but I could borrow some. Would that not make my situation worse (that’s assuming I could find some ‘merchant’ banker to lend me the money)?
    Can someone please explain the logic of being overdrawn at the bank, having no credit left on any credit card, then seeking out further lenders in order to pay for things I cannot afford? In the sure and certain knowledge that the debt+interest will make the situation even worse. If you can’t pay for it - you can’t have it! There is a limited amount of money in this world - unless, of course, if you just print more. For goodness sake, cannot someone stop this lunacy!

  3. By admin on Nov 18, 2008 | Reply

    I think your right Barry, this governments plans are scary to say the least.

Post a Comment