VAT cuts create jobs in China: not a good use of UK government debt

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I've made my hopes for the Pre-Budget Report pretty clear: infrastructure led job creation, support for those unemployed, help for those with mortgage difficulties, and investment in the green economy.

It looks likely that Alastair Darling will offer VAT cuts: a useless consumer stimulus that will only create jobs in China and which shows he apparently thinks we can consume our way out of a recession created by consumer driven debt.

Compare with the USA where Obama's team are planning green jobs and infrastructure development.

Brown still has a lot to learn. Maybe it's too late to think he will.


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