Saturday 19 September 2009

Why Britain needs to invest in the future

During the last year, the UK and the world have seen economic recession, a rise in unemployment, banks merging and failing, and many businesses going bust. Governments around the world spent billions in investing in infrastructure projects to give a boost of the economy, but now, with rising debt many calls have been made to stop investment to make cuts.

These people are right to an extent - many wasteful programmes which do not work should indeed be cut. However, the ceasure of this investment could easily result in the economy going backwards again and leading to a double-dip recession. In this critical situation, we need to continue investing in these programmes in order to keep people at work and keep the economy growing.

While investing in the future does cost large amounts of money, it is positive for the infrastructure and means that the UK can compete with other countries and become a much better place to live. What the public do not understand is that their money is being used to improve Britain as a country, and make their lives better and easier.

Therefore to stop investing in the economy right now would be fatal for the British economy, and especially workers. Unemployment is still rising despite assurances that the recession is ended, we still need to continue investing in big projects so there are jobs available and people can earn a living. Don't forget that government benefits also come from the taxpayer. When the economy recovers fully then that will be the time to slow down the investment and paying back the debt.
The next government, no matter which party, should continue investment, and the Labour government should receive less stick for predicting that the recession would be over by Christmas, because, it seems the prediction is not far away. Although companies are still closing, and unemployment is still rising, which are the real indicators of economic health, there is no doubt that the situation is improving and stocks are slowly rising again to their previous heights.

No comments:

Post a Comment