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Government Capital Expenditure

There are many ways of stimulating spending, and to be frank, the one that the hon. Gentleman suggests is probably the least helpful in the short run, for the simple reason that it would make it difficult for a lot of employers who are currently struggling to hold on to their labour force. As a general social objective, I support the principle of the minimum wage, and would like it to be improved, but I do not think that that would help us better than many of the mechanisms that I have described. What does have to happen is the expansion of credit; that, of course, is the key. This debate is not about the role of the banks and monetary policy, but that is the key element in reviving demand and spending. However, it is a debate for another day.