Davos Austerity Debate Renewed as Summers Splits With Osborne
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U.K. Chancellor of the Exchequer George Osborne and former U.S. Treasury Secretary Lawrence Summers sparred over how much governments can spur investment, reviving the debate over the virtues of austerity.
Speaking at the World Economic Forum’s annual meeting in Davos, Switzerland, Summers argued the U.S. government should take advantage of low interest rates to invest in infrastructure, contending such expenditure would spur economic expansion and pay for itself through higher tax revenues.