Weekly blog
This article discusses the recent decline in GDP by .3% in the first few months of the year. The struggling eurozone as well as downturn in the construction sector has resulted in a state of economic depression. “Deputy prime minister Nick Clegg suggested that the coalition plan to expand its policy of credit erasing, using government guarantees to kickstart spending on infrastructure and housing to boost the economy.” As we’ve learned in class, Clegg’s suggestion includes important short term and long term remedies. In the short-run, by helping to boost the housing market, citizens will face eased financial burdens on their home which will then lead to an increase in consumer spending. In the long run, by investing in infrastructure the government is expanding its capital resources. This will lead to an increase in jobs which will help boost consumer spending as more employment equates to more money and more disposable income.
No comments:
Post a Comment