Wrong way to reverse effects of recession

THE way out of recession is for the economy to expand.

This will happen when businesses increase their trading with each other.

This happens when the public spend money with those businesses.

Higher taxes and higher interest rates cause people to have less money to spend, the result being that the economy stagnates.

Can anyone please explain why the Bank of England and the Government think that ensuring that people have no “disposable income” will help us to avoid/get out of recession?

Quite obviously, it will have the opposite effect.

Roy Wheatley via email