Monday, 23 March 2020

The government’s economic response to the Coronacrisis is necessary, but the measures must be temporary

FMC
Some socialists may think that there are no consequences to almost limitless borrowing, but just as the clean up of a drenched house in the aftermath of successful firefighting is arduous and painful, so too will be the consequence of the national fight against Covid-19. The added weight of unspeakably large debt will burden the nation, its taxpayers, and particularly younger generations for years and years to come. This is not a free ride.    .....You cannot borrow your way out of recession or spend your way out of debt. Thankfully, the deficit reduction of the last decade has meant that in a moment of crisis such as the one we now face there is more confidence in our ability to pay it back. Ten years of fiscal restraint left us ready to borrow huge amounts for emergencies."

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