Corporate behaviour in both the UK and US has changed because of the change in management incentives. The result is that the savings’ surplus of business is no longer a cyclical problem that will end once the animal spirits of entrepreneurs have revived. It is now a structural problem. This is ignored by those who call for an end to fiscal constraint on the grounds that deficit cutting should follow, not precede, sustained recovery. No sustained recovery can be expected without a change in policy as new problems require new solutions. The UK must change the savings’ surpluses of the foreign sector by currency intervention and that of the corporate sector by changing the bonus culture.