MikeTV said:We'd be in a much bigger mess, but that's a silly hypothetical - what would they have had to cut - schools, hospitals, pensions, and then what else? And how much unemployment and deprivation and hardship would £150bn cause?
But yes, the financial crisis would still have happened, and yes, it would have had the same devastating effect on our economy.
None. The economy was expanding, people were rich enough to begin shouldering their own burdens instead of frittering it away on houses, cars, holidays and furniture. The economy would have become stable and house prices would have risen at a slower pace.the economy wouldn't have been quite so supercharged. Less state spending would have encouraged more investment in businesses but in a far less super heated environment less poor investments would have been made.
We might still have had the downturn, but recovery would have been faster. Its just basic economics really. The politicians just forgot that when you lend and spend recklessly someone has to foot the bill. The more that is spent, the bigger the bill and the longer the pain continuous.