Stick or Twist?

Stick or Twist?

After months of flirting with it like an awkward teenager at their first disco, it is official……we are now back in recession. The first ‘double dip’ since 1975……congratulations to all concerned at Westminster.  

Hardly a surprise really. Austerity measures are all well and good as a concept, but when the Government simply wants to spend less money, this creates less wealth in our economy through job losses and the reduction of private sector services that support the public sector.

The austerity measures are designed to address our Government / Public spending and reduce it to a level that is consistent with our income (reducing the need for expensive public borrowing as a consequence). The problem is……this will take another 4 – 5 years of painful cut backs before there is light at the end of the tunnel. However, at the end of it, we should be in a much more positive position as a country and economy moving forward.

But that doesn’t help us now and there is no guarantee that the 4 – 5 years of pain will have been worthwhile. In fact, if the economy isn’t growing it could take even longer.

So what do we do?

Scrap the austerity cuts and create jobs / wealth now and inject life into our economy by the Government spending money is doesn’t have (increasing public borrowing as a consequence).   

Or

Stick with the austerity measures, play the long term game and hope the next Government elected in 3 years time continues with the plan.

Stick or Twist?

I can give a pretty good argument for both. My 2p worth……the one thing you don’t do when things aren’t going well is nothing. Time to play the joker me thinks......action and economic stimulus please Mr Osborne.

Time will tell.