Want to avoid recession? Then shower UK households with cash | Simon Jenkins

The economy is in dire need of a jump start – cutting interest rates has failed miserably. So instead give money to people who would actually spend it

Just give people the money. Give them cash, dole it out, increase benefits, slash VAT, hand it to those most likely to spend it: the poor. Put 1,000 into every debit account. Whatever you do, don’t give it to banks. They will just hoard it or use it to boost house prices.

Britain is suffering from a classic liquidity trap. There is insufficient d...