The crucial issue facing politicians at present is the response to the economic deficit. No-one is in any doubt that cuts have to be made in order to bring down the deficit, but there must also be an emphasis on the future and on how the British economy will foster its own recovery. The Coalition Government is currently in the process of enforcing ‘savage’, and rather draconian, cuts which are quite blatantly influenced by a ‘small government is best’ ideological narrative. Despite the pre-election rhetoric of ‘change’ constantly referred to by both the Conservatives and Liberal Democrats – and the real possibility of change following the establishment of our first post-war Coalition Government – the cuts being made have the same traditional focus of the 1980’s, hitting the public sector, cutting benefits, and relying on a deflated private sector to pick up the pieces. Today the Office of Budget Responsibility estimates that 600,000 jobs will be lost in the public sector by 2016. Compare this consequence of the Coalition Governments cuts burdened by the public sector, with the paltry £2.4billion levy placed on the banks in last weeks budget. Is this the consequence the banks pay for contributing to the global financial meltdown? Of course, the Conservatives will argue that it is the financial sector, not the public sector, which creates wealth. But one has to question whether the quest for further wealth should be pursued against the backdrop of job-cuts affecting low to middle income earners.
Category Archives: Economy