If we don't act fast, a plunge into depression is a growing risk in both the United States and the United Kingdom.

Quantitative easing will probably have to be started again this year in both countries. The so-called Bush tax cuts, which are scheduled to expire at the end of the year, should be extended as soon as possible.

In the UK, the draconian public-spending cuts alongside the increase in value-added tax planned for the end of the year should both be scrapped. Now is the time to cut taxes, not increase them. Payroll tax holidays are the way to go.