Wednesday, October 13, 2010

Cuts hurt (almost) everyone

UNISON's apt response to the revelation from PWC's department for stating the bleedin obvious that public spending cuts will also cost private sector jobs is most welcome (http://www.unison.org.uk/asppresspack/pressrelease_view.asp?id=2012&utm_source=twitterfeed&utm_medium=twitter).



Unless you adhere to the discredited "crowding out" thesis it's impossible to believe that rolling back the state will create space in which private entrepreneurs will innovate and make their fortunes whilst spreading wealth, happiness and Tory Party membership.



On the contrary, reductions in public spending simply reduce aggreggate demand and push economic activity downwards, not just through the direct impact on companies depending on private contracts but also through the multiplier effect arising from reduced spending by workers thrown onto the scrapheap or forced to accept reduced incomes.



We have to start explaining this basic economics, first of all to our own members.



Of course there are those who won't be worried - the spivs and chancers who run companies bidding for outsourced work will be hoping to do nicely.



Most millionaires (amongst whom can of course be counted the majority of the Cabinet) won't be that bothered either of course.



The cuts aren't an attack on the British people - they're an attack by one small but wealthy and powerful section of the British people on the rest of us.

Sent using BlackBerry® from Orange

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