No pasaran is Osborne\’s reply. Nothing doing in any of these measures. \”My government\’s legislative programme will continue to build a stronger economy\” were Her Majesty\’s words: only the HS2 rail plan might save her from outright mendacity. But no shovel hits the earth until 2017, long after it\’s needed as a stimulant.
Yes, this is the problem with infrastructure spending as a boost to aggregate demand in a recession.
There simply aren\’t any large shovel ready projects. Given the red tape that infests our economy, there cannot be.
We could relax many of the planning laws of course: but then we probably wouldn\’t need to boost aggregate demand then, would we?