What does slash public spending mean for the economy? Is recession the right time for tightening the belts? Where does the growth come from if everybody is cutting down? Many say that low levels of government spending make the economy grow faster. It may be true, but people may not necessarily profit from it, especially if it’s another jobless recovery. With unemployment reaching record highs in the developed world and people’s incomes being squeezed, can austerity cuts spur future growth? And does the West really have a choice given the very high debts it accumulated? CrossTalking with Pippa Malmgren, Dimitri Papadimitriou and Fragkiskos Filippaios on February 13.
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