THE Northern Echo gives prominence to the dire economic news (Echo, Apr 26) as we enter another phase of a Tory government’s recessionary disaster.

It is clear that you cannot cut your way out of a recession and this was evident from past experience.

The conventional wisdom of the 1930s held that the causes of mass unemployment and falling output at that time were high wages and benefits. The government back then took the view that people should price themselves into work and be forced, by lower welfare, to seek non-existent jobs.

Is this familiar to anyone? So here we are again, posh boy millionaires lecturing the less well off on the merits of belt tightening.

Also familiar is the policy fig leaf of low interest rates. This failed 1930s strategy cannot work. Businesses will not borrow money at a zero rate if they cannot sell goods.

And Labour’s approach – slightly fewer cuts – is excessively timid. The dour revival of failed 1930s economic dogmas should be opposed vigorously with proposals for public works programmes and tax cuts to stimulate demand.

The US has burst out of its economic strait-jacket with tax and spend policies. Germany stimulates industry and uses welfare increases to climb back to growth.

We are left with a miserable debt reduction strategy, hammering workers and the poor. Our debt is low by historic standards. There never was any panic to reduce it, but the Tories traditional hatred of government spending drives the economy down.

Rob Meggs, Hartlepool.