“…Government considering capital spending to inject growth into economy..”

“..A substantive reversal of capital spending cuts is being examined by coalition ministers in the run up to the chancellor’s autumn statement -

- as part of an effort to inject growth into the economy before the election.

The business secretary Vince Cable, in a highly nuanced political speech to the Liberal Democrat conference, indicated the need for urgent action.

“Right now we are fighting recession,” he said.

“The need is for a demand stimulus.

And that does not just mean pumping more money into the banks.

“The great Liberal, Keynes, had exactly the right analysis of the problem we now have – not enough spending power in the economy.”

Cable pointed to previously announced plans for government to provide guarantees so housing associations could build in large numbers…”

(cont..)

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Government considering capital spending to inject growth into economy | Politics | The Guardian.

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