A million jobs at risk from spending cuts

Stephanie Flanders looks at the possible employment effects of the government’s spending plans focusing here in government investment spending in rail - where investment programmes can have a big impact on many local economies. Several of the leading business organisations are lobbying for capital spending to be maintained because weaknesses in infrastructure might seriously hamper the sustainability of any future recovery. With long term bond interest rates at almost record lows, the rates of return required for investment to pay its way seem to be fairly low.