UK Markets open in 3 hrs 24 mins

How Money Works: Can austerity ever work?

The only way out of our economic mess it to cut spending. Or massively increase it. Depending on who you listen to...

One thing’s for sure, austerity hurts. But after five years of a terrible economy and a credit rating downgrade,

despite the Government’s best efforts to cut our way to growth, it’s fair to ask if austerity can ever work and what the downside to spending is?

So we have. Watch our video to find out why the Government thinks austerity is the way ahead and why Labour are convinced it isn't.

See more episodes from Yahoo! Finance's How Money Works series