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Written by Peter Charalambous
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Sunday, 05 July 2009 18:53 |
The Chancellor is Alistair Darling planning an ‘old skool' pump priming technique as used in the great depression with a new building programme that will create thousands of jobs even though unemployment could hit up to 2 million by the end of the year. The multibillion government investment plan is seen as the easiest and quickest way to get Britain out of this economic downturn, as the crisis hit economy should respond the cash injection. It is believed that the Chancellor will use the money from future budgets as spending guidelines are literally thrown out of the window by wielding tax payers money in the face of our current economic crisis. The extra money will be put forward as essential public spending which will be used for new schools, hospitals and housing which should help the UK's beleaguered construction industry. The details of the plan will be revealed in his Pre-Budget Report, however many analysts have been critical. The plan is expected to reveal an increase in borrowing projections and a variety of different measure to deal with spiralling UK debt. Darling has stood firm reiterating that "this is a time when you have to support the economy," with such interventionist policies proven to work as was argued by the early 20th century economist John Maynard Keynes.
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