Saturday, January 9, 2010
Recipe for Depression
Even as Britain recovers from recession, it faces one of the largest budget deficits in the world at more than 12.5% of gross domestic product. That's nearly twice the deficit level it faced during the last major economic crisis of the early 1990s. Paring it down will drain billions of pounds from the economy, as the government boosts taxes and squeezes spending at a time when British consumers face mountains of debt.