Everyone knows that times are tough. One of the issues that can't be avoided is that the recession led to a fall in output and that means someone has to be worse off.
The policy response of the government meant the recession was not as bad as it could have been, but the government debt that built up as a result is now an issue.
How to reduce the balance of the debt the government built up is a contentious subject. The Institute of Fiscal Studies has looked at the impact of the governments plan to reduce the debt. It is important to consider the distribution of the pain of the solution.
However some may say that the argument is pointless. If the government had not acted then the pain would have been much worse and unfairly distributed (the unemployed would take all the costs) and that there is little anyone can do except spread the pain acrosss more generations.
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