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Howard - growth will happen but currently it is held back by the sovereign debt crisis in the EU.
What Plan B is there anyway?
You cannot spend more because that means borrowing more and that will mean downgrading and getting to the same kind of situation as Spain and Italy (not Greece, slightly different there). Government spending does not really boost growth anyway unless it is spent efficiently in making it easier for the private sector to do business (better roads, better broadband) but that would only impact years ahead and would be limited anyway.
No - we must keep on with deficit reduction and, if anything speed it up and really start cutting down on public spending. Then taxes can be cut particularly on businesses. The other thing, of course that can be done is a wholesale bonfire of government rules and regulations, all the stuff Labour (and the EU) loved to stuff business with. Cut out the many of the employment laws, get rid of the destructive minimum wage, drop the plain daft equality regulations and so on...
Reduce the burden on business, make it easier to employ and to sack people and get back to the market wages. That is what is needed.
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