Spend, Spend, Spend

” The Government are planning on a massive spending spree to help the economy. Boris will set out plans to accelerate spending on infrastructure projects.

This is similar to the US spending by Roosevelt after the 1929 crash. The aim of this spending spree is job creation.

If money from the government goes into the economy then there is a trickle down effect and it is supposed to help other sectors of the economy.”

Nigel Holland

From BBC

Boris Johnson will promise to “build build build” as he unveils government plans to soften the economic impact of coronavirus.

Speaking in the West Midlands, the prime minister will say he wants to use the coronavirus crisis “to tackle this country’s great unresolved challenges”.

As part of a “new deal”, Mr Johnson will set out plans to accelerate £5bn on infrastructure projects.

Labour called for a “laser-like focus” on preventing job losses.

The prime minister’s speech comes as BBC analysis found that the UK was the hardest hit of all the G7 major industrialised nations by the virus in the weeks leading up to early June.

In April, the UK economy shrunk by a record 20.4% as a result of the spread of coronavirus and the subsequent lockdown measures.

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Aiming to emulate the New Deal policies of the depression-era American President Franklin D. Roosevelt, Mr Johnson will say he wants a government that “puts its arms around people at a time of crisis”.

In the aftermath of the Wall Street Crash of 1929, President Roosevelt launched one of the largest, most expensive US government programmes which included building schools, hospitals and dams.

In a bid to boost the country’s financial outlook, Mr Johnson will pledge to put jobs and infrastructure at the centre of the government’s economic growth with a commitment to “build, build, build”.