Abstract
In today’s economic climate, everyone has an opinion about policy reactions to the current world recession and aftermath of the financial crash. I do not see where government austerity has the potential to bring about the immediate changes that stimulus spending would. We are now trapped in a cycle where an unstable economic environment has made liquid assets more valuable than capital investments. This is not going to change until unemployment levels rise and that is not going to happen without capital investments. It is a catch 22. Austerity makes the problem worse, it adds unemployment by cutting programs and ...