Spending Their Way Out of Recession
Spend or save, that is the question. Watching newly inaugurated US President Barack Obama fight to push his trillion-dollar public spending plans through congress, exemplifies the divide between the two opposing schools of thought on how to deal with the current financial crisis. Conservative politicians holding opposition office (both here and in the US) appear to advocate lowering taxes and argue against the high levels of borrowing Gordon Brown and Obama are embarking on. But in practice the majority of both left and right governments around the world are doing similar things to Brown and Obama and advocating economic stimulus plans – albeit to a greater or lesser extent. But how do tyre businesses get out of slump? Can this market spend its way out of recession?