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Where did all the money go?

As the UK economy continues to bump along in recession many people are now wondering where the billions upon billions of pounds of taxpayer's money has all gone. We have seen a quantitative easing investment programme in the billions, we have seen VAT reduced, we have seen the UK government take a large stakes in UK banks and investment programmes continue up and down the country. However, if the economy has yet to respond, where has all the money gone?

This assumption would be that if the UK government have not invested the hundreds of billions of pounds of taxpayer's money into the UK economy over the last few months, the economy would be in an even worse situation than it is today. Not only would we still be deep in recession but the likelihood is that there would be very little sign of recovery in the short to medium term - although whether there is any sign of recovery today, after the investment, is also debatable.

If the economy was to take a further downward lurch, which is a distinct possibility, the UK government would have great difficulty finding the same level of investment as it did just six months ago. Where would we be then?

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