Ministers must learn Britain's no household
Sunday 02 September 2012
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EmailThe government claims that the nation's budget is just like a household budget and of course households have to live within their means.
But when a country has high unemployment this simple rule does not apply to the national budget.
This is because an increase in spending can add to production by creating jobs that will be filled by people who would otherwise be unemployed. A single household, by spending more than it earns, cannot change the economy, but a national government can.
Will Podmore
London E12
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