Collapse of investment (not debt) is greatest threat to economy

David Cameron and George Osborne argue that the national debt is the biggest threat to Britain’s prosperity. By focusing on government spending they are ignoring the implications of the fall in investment. leftfootforward analyses an ONS report today.

The ONS reported today that:

“Business investment for the second quarter of 2009 is estimated to be 10.2 per cent lower than the previous quarter and 21.8 per cent lower than the same period last year.”

In the short run the large fall in investment across the economy has been a major driver of the current recession as ONS figures show.
>Read the full analysis at www.leftfootforward.org