What we want to do is reform the welfare system in the way that Tony Blair talked about 13 years ago but never achieved – a system that was created for the days after the Second World War. That prize is now I think achievable. – Iain Duncan Smith

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Increased government spending can provide a temporary stimulus to demand and output but in the longer run higher levels of government spending crowd out private investment or require higher taxes that weaken growth by reducing incentives to save, invest, innovate, and work. – Martin Feldstein
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