Lessons from wars, pandemics, recessions and natural disasters have taught us that countries can bounce back and prosper
The federal government will need to keep spending for as long as it takes to get the economy truly humming. Following the global financial crisis, the UK found that moving to austerity settings too early led to a decade of stagnation. Stimulus should progressively shift towards measures that contribute to long-run economic growth and address strategic priorities such as climate change, for example, by investing in research and development or electricity transmission and storage capacity.
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