Latest Issue

Why a Keynesian stimulus is best for both the economy *and* public finances

There is no trade-off between supporting workers and fiscal sustainability

By Carys Roberts and Carsten Jung  

Keynes's central insight. Photo: TopFoto/PA Images

The economic costs of the pandemic are mounting up as we approach the depths of the long Covid winter, with firms crumbling under large piles of debt. The Debenhams bankruptcy alone will likely trigger 12,000 job losses. However, a full-blown jobs and economic disaster is not inevitable. The Chancellor Rishi Sunak has the tools to prevent enduring economic damage, preserve businesses and jobs, and spur the private sector into creating new ones. Crucially, by doing so, he can also strengthen the public finances and stabilise debt. The question is whether he is willing to use…

Register today to continue reading

You’ve hit your limit of three articles in the last 30 days. To get seven more, simply enter your email address below.

You’ll also receive our free e-book Prospect’s Top Thinkers 2020 and our newsletter with the best new writing on politics, economics, literature and the arts.

Prospect may process your personal information for our legitimate business purposes, to provide you with newsletters, subscription offers and other relevant information.

Click here to learn more about these purposes and how we use your data. You will be able to opt-out of further contact on the next page and in all our communications.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

We want to hear what you think about this article. Submit a letter to

More From Prospect