Tax Research UK

Why would I believe a chart that told me US GDP was zero in 1933?

Thanks for the clarification. I quite agree that, as we are spending billions to buy our way out of the recession, it would be a good idea to spend it on permanent infra-structure investment rather than, say, cutting VAT to encourage spending on electronics manufactured in Asia.

There are limits, however. We need to spend the money quickly to have any effect but, for example, wind turbine manufacturers have full order books and can’t supply new machines until about 2012, by which time we hope the recession will be over.

Infra structure projects tend to get bogged down in planning delays. Again, for example, NIMBYs on the Isle of Wight are fighting against wind turbine development there, despite the fact that a turbine blade manufacturing company is one of the largest employers.

Extra rail investment would take a similarly long time. (I don’t understand why it takes so long to build railways these days. Navvies with wheelbarrows did it much quicker in the nineteenth century. It must be something to do with Health and Safety, I suppose.)

I doubt me that big grants for installing solar hot water heating would provide a sufficient stimulus to the economy. (But that’s not an argument for not doing it.)

By the way, congratulations on your Radio 4 appearance last night - very persuasive. Have you posted a link to ‘Listen Again’? Your readership would quite like it, I’m sure.