Saturday, 28 April 2012

The only bit of the economy that's growing is...



As I observed yesterday in a point about jobs, these cuts, this austerity - at least as far as the public sector is concerned - seem pretty illusory:

Well, strictly, “government and other services”, so it includes defence, the National Health Service and so on, but also private education and private healthcare. That sector of the economy has expanded by more than 5 per cent since 2008; health and social care has expanded particularly strongly.

The only austerity measures have been tax rises - higher taxes on buying stuff, the closing of so-called loopholes and an avalanche of increases in duty on things like booze, fags and petrol.

The public sector - and all us politicians hovering round its honey pot - isn't where the austerity is biting. We're OK - it's the bloke who hasn't had a pay rise in five years and can't afford his pension any more, the pensioner on a fixed income while inflation rockets and the mum juggling a part-time job with a couple of children, who are being bitten.

And - however much it may pain the big unions, the Labour party, the panjandrums of civil service and the state employees at the BBC - the answer is still just what is was back in 2008, and 2009, and 2010, and 2011...

...cut taxes on incomes, reduce the tax on jobs that is employers national insurance and stop treating businesses as if they are the spawn of Satan rather than the only hope for us seeing out the recession.

Get on with it...


1 comment:

Anonymous said...

Food handouts for the poorest in Britain now.
Private employees suffering the most.
Redundancy, low pensions due to low interest rates.
Mortages up property prices down.
Taxation going up by stealth all the time.
Food prices rising.
Except for the fat cats the government and the public sector, civil service.
A vast national debt.
Sounds like the problems a third world country experiences to me.
The governments of present and past have caused this or appear incapable or unwilling to solve it.
Sounds familiar?

Καλώς ήλθατε στην Ελλάδα