In extraordinary times, we have a clear choice — act now to come out of the downturn sooner and stronger, or sit back and watch as it gets deeper and longer.
This Government will not abandon people to sink or swim in the face of the global downturn.
‘Letting the recession run its course’ is exactly what David Cameron has set out, ruling out providing extra support to people and businesses through the tough time ahead.
The ‘do nothing’ party, and their ‘no action’ plan would mean a deeper, longer and more painful recession.
Its ideology means it is isolated while the rest of the world takes the co-ordinated action needed to help get us through.
In the Eighties and Nineties, the Tory Government stood by as businesses and families suffered.
In 1981 tax and spending policy was tightened significantly, while in the early 1990s recession tax and spending policy was only loosened significantly between 1992 to 1993, when the economy had begun to grow again.
This meant in the early stages of these past recessions, domestic macro-economic policy acted as a brake on activity.
Governments and economists around the world agree monetary and fiscal policy must work hand in hand — and the co-ordinated action on interest rates we have seen must be matched by Government action via tax and spending to support the economy at a time when it needs it most.
So there is a widespread consensus that a fiscal stimulus to help the economy is the right thing to do.
It is backed by the major countries of the world, the international institutions, the business groups like CBI and the Institute of Directors, parties on the left and right, the Bank of England and many more.
Opposing it, completely isolated, are the Tories.
The responsible thing to do is put money into supporting the economy now — it will mean a shorter downturn rather than the longer and deeper recession doing nothing would entail.
A prolonged recession means people out of work for longer, more repossessions, businesses taking longer to start growing again and a country scarred, as happened following the home-grown recessions of the Eighties and Nineties.
Decisive action has been taken. There is a clear choice for the British people; real action now or no help at all.
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