"with long-term government borrowing as cheap as in living memory, with unemployed workers and plenty of spare capacity and with the UK suffering from both creaking infrastructure and a chronic lack of housing supply, now is the time for government to borrow and invest. This is not just basic macroeconomics, it is common sense. "
The charts below (click on each to enlarge) try to illustrate this. They show, first, that the economy has now seen essentially no growth at all since the autumn of 2010. Output is still more than 4 percent below its peak in 2008, and probably won't regain that level until sometime in 2014. This is a far longer period of depressed output than the Great Depression: