Accepting that their economy is sinking, Conservatives in the U.K. are announcing a new stimulus package to counteract anti-growth austerity measures that have forced the U.K. back into a recession. But rather than stimulating working people who spend money – the Bank of England is instead stimulating the banks with $80 billion pounds in hopes that those banks will lend that money out to small businesses.
It’s the same policy the Federal Reserve here in the United States has used – since Congress has failed to pass any real stimulus in three years. This is nothing more than a Band-Aid – and a bailout for the banks. If Europe and the United States are ever going to get their economics on track then it will require government spending to put people back to work building roads, bridges, and schools. We have to stop relying on Wall Street to get us out of this crisis. After all, they’re the ones who started it in the first place.