The beatings will continue until morale improves: businesses lack animal spirits.

In the General Theory, Keynes pointed out that the psychology of businessmen is actually quite fragile. That is why that once they were scared (e.g. by the crash and depression) it was hard to get them investing again. "Animal spirits," according to Keynes, had to be nurtured and encouraged or they would not appear. He actually said that making new investments is usually irrational and that a mood of unrealistic optimism is needed for this to occur.

Those in government seldom understand this. They think business people are raring to go at all times and that restraining, not encouraging, them is the best policy. The truth is that businesses all over the world are now sitting on their hands and reacting to demand rather than anticipating it. They are dispirited.  Increasingly anti-business policies around the world are making the situation worse. Negative psychology is the big risk of recession/depression today.