Expansion Is the Key to Flee the Recession ; in the Past 18 Months the Uk Economy Ground to a Halt and the Banking System Came Close to Collapse. Commentator John Parfitt Argues the Best Way Out of Recession Is to Get Back to Basics

Summary

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Britain has a problem. For years we have been spending too much, often on things we don't need: we have a banking crisis, firms closing down, jobs being lost, a shrinking economy and ballooning national debt, up since 2002 from 29 per cent of GDP to 56 per cent, which every year costs us about Pounds 30 billion or Pounds 500 each in interest.

Other countries including America, Japan, Germany and France have bigger debts but our international creditors are getting suspicious: we must tackle ours before rising unemployment and private finance debt take it even higher. Some experts suggest cutting public spending and raising taxes. That would shrink the economy, but if we grow it instead it is easier to cut debt. But how? Our economy grew for centuries by trading overseas, often with British-made goods. We must rebuild that trade because relying on financial services and boasting that London was the world's financial capital didn't work. Juggling other people's money expanded the economy without nourishing it, just as too much beer might expand our waistlines without making us fit.

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Expansion Is the Key to Flee the Recession ; in the Past 18 Months the Uk Economy Ground to a Halt and the Banking System Came Close to Collapse. Commentator John Parfitt Argues the Best Way Out of Recession Is to Get Back to Basics

In 30 years, manufacturing has fallen from 30 per cent of our economy to 14 per cent and shed millions of jobs; our annual manufacturing deficit rose to Pounds 70 billion while other countries powe...

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