UK Economy The UK economy is suffering from a lack of demand - people and organisations are not spending enough. The lack of demand stops the creation of new jobs. The lack of work means that people have no cash so there is a lack of demand. This is a vicious circle. How can the government create demand to create jobs which will then provide the demand to create further jobs? The big problem is that our borders are wide open. We can buy products from anywhere in the world so our spending creates jobs abroad and any jobs we create in the UK will be filled by people from poorer parts of the EU. If the government gives you or me £2000 in tax cuts we will buy a computer from Taiwan and a television made in China. We might use what is left over to employ a plumber from Poland. If we buy more from abroad than we sell back to them the pound will fall in value and the £2000 will become almost worthless (See Note 1 below). The challenge for the go...