Tuesday, November 2, 2010

When Is The Coalition Government Going to Tell the Truth over True Unemployment Fears? Cuts & VAT Rise To Cost 1.6 m Jobs!

Spending cuts and VAT rise to cost 1.6m jobs, says CIPD
Remember This?
"Yes It's Hurting, No It's Not Working?"
These Are The Tory Dole Queues of the 1980s
Get Used to Them
Cameron, Osborne & Clegg Are Bringing Them Back!
"Unemployment (apparently) Is a Price Worth Paying"!

Every day the government of Britain batters the people with cuts and the effects of cuts, so much so that because of the coalition's scaremongering, consumer confidence is at all time low and looks to continue to fall.

Don't let this government tell you there is no other way, there IS. It is not necessary to cut too far, too deep or too fast. We should be paying the deficit down by sensible reforms to the welfare budget and sensible sustainable cuts. There is no need to put the country's economy at risk with high unemployment seen as a "price worth paying" for this Tory and Liberal Democrat severe ideologically based austerity measures. It would appear to me and to many leading economists that Cameron, Osborne and Clegg are playing risky political game and taking a huge ideological gamble with the livelihoods and futures of every single person in this country. It doesn't matter if they win, they have absolutely NO right to be taking this gamble, they have no mandate and never mentioned it in their general election campaigns just 6 months ago. The reason why they are taking this gamble is if they win, because they have *permanently* cut back the state, taken away NHS services and taken away school buildings projects and charged students a higher price for their education, with education being badly effected as a whole, they will be able to offer the taxpayer a tax reduction. To the ordinary person this will amount to probably £2 or £3 per week, to the Tory business leaders the ones that donate huge sums to the Tory party and other fat cat Tory bosses, this will mean they will save millions on their taxes.
What can you buy with £2 or £3 per week? Will it buy the extra healthcare you and your family may need as a result of the Tory and Lib Dem cuts to the NHS? Will it buy private education for your children? Will it pay to hire someone to care four elderly relatives after the Tories cut their home-care? Think about that the Tories are doing, they are out to feather their rich plush nests, pay as little tax as possible and to make sure their friends do the same. The Tory chancellor George Osborne has dodged paying inheritance tax and so has the man responsible for the swingeing cuts in welfare, Iain Duncan Smith, who lives  in a stately home, with tennis courts, swimming pools, stables etc RENT FREE, this is only one of his posh expensive homes, yet he is the man that will be responsible for cutting the housing benefit and forcing thousands of people into poverty as they struggle to pay their rent, these people will have to choose between living in their homes or eating, or moving.

This morning we learn that the true number of job losses due to these barking mad cuts will be nearer 1.6 million.

One Loser To Another
Cameron To Schwarzenegger
"I Thought You Said The Cuts Would Work!"
This certifiably insane Tory and Liberal Democrat government have absolutely no precedent for the measures they are taking, cuts to this point have not been tried anywhere else in the world, in fact I can think of only two places who have adopted these kind of austerity measures and that is California where Gov. Arnold Schwarzenegger has ordered about 200,000 state workers to be paid the federal minimum wage because the state Legislature has not passed a budget. The State's fortunes have still not rallied despite the terrible cuts to spending that Gov. Arnold Schwarzenegger has implemented Schwarzenegger's Cuts Prove Futile. And Southern Ireland where a swingeing round of cuts were imposed and instead of helping the economy, the cuts have harmed it further and Ireland has slipped back into a "double dip recession".  When the rest of the world was dusting down their copies of Keynes's General Theory to justify fiscal stimulus packages during the great recession, the Irish embraced austerity. Big time. Britain's Tory Chancellor George Osborne point to Ireland as a role model and said "if only the UK was brave enough to do the same", last month Ireland sank back into a double dip recession, so where does this leave the UK's plans for austerity? In fact the Tory PM David Cameron is big chums with Arnold Schwarzenegger and is applying measures here that the Governor has applied WITHOUT success in California, Arnold Schwarzenegger is not standing for re-election and with poll ratings of just 22%, it's a good job because he would be humiliated! So with only two precedents sort of the same as Britain and both abject failures, why is this government still pushing ahead?
 Since this coalition government assumed power in the absence of any party having a majority, they have made the UKs economy worse, they have given us one budget with £6.75 billion worth of cuts and they have also just given us their Comprehensive Spending Review detailing a further £83 billion cuts, making £89.75 billion in total and still the respected think tank the Institute for Fiscal Studies (the 'IFS' the Tories preferred think tank) states for the Tories to actually pay down the deficit, they will have to come back to the country and introduce still further heavy cuts.

What is even more scary the dolt chancellor does NOT have a plan B for this country should the wheels come off his wagon! He is taking an unmitigated gamble with the country's finances, like the Tory Chancellor Norman Lamont once did on "Black Wednesday" - and lost!

Is that a cause for all the back slapping of George Osborne  by Tory PM Cameron and Liberal Democrats Clegg and Alexander  when he sat down in the Commons after delivering his CSR, to the shouts of delight and whoops of joy and the waving of order papers? Anybody would think that England had won the "World Cup" after all and that the Chancellor had not just announced measures that would force almost 100.000 people to choose between eating or paying their rent after he cut their housing benefits, or forcing 500.000 people out of work, or cutting benefits the women and children some of the poo-rests people in our country.

Sooner or later we are going to be asked to choose between backing this government or returning to the compassionate country and people we really are, I just hope that this comes sooner rather than later, because Britain is not going to withstand these certifiably insane measures from this certifiably insane government.
Think about that whenever it is that you may be asked for your support and remember it could be your parents/grandparents with their care cut, your children/grandchildren who loses their job, your relative forced to grovel and sweep the streets before being deemed worthy enough to claim benefit, it may be your housing benefit capped or your relatives etc. It is your relatives they are saying are "welfare scroungers" or "benefit cheats" or choose the lazy "lifestyle choice", they make no distinction about who is who on benefits, they lump them altogether and deliberately foster the opinion that ALL on benefits are somehow cheats or fraudsters, when they know fully well that the true figure is just 1%-2% of all claimants.
Think about it because these figures show that it may very well be you that may need to claim benefits in the very near future.

Spending cuts and VAT rise to cost 1.6m jobs, says CIPD

The CIPD says the private sector will be hit harder by the cuts than the public sector!

The government's spending cuts and the rise in VAT to 20% in January will result in more than 1.6 million job losses across the public and private sectors by 2016, research suggests.
The figure from the Chartered Institute of Personnel and Development (CIPD) is far higher than previous estimates.
It said the full impact of the Spending Review had been "understated".
A government-appointed body has estimated that about 610,000 public sector jobs will go by 2016.
The Treasury defended its spending cuts, saying: "The independent Office for Budget Responsibility has set out its forecast showing sustained economic growth in the years ahead, with employment rising and unemployment falling."
Some business groups, including the CBI, have said that job creation in the private sector will be able to compensate for losses in the public sector.
However, the CIPD said that the private sector would be hit harder than the public sector.
An average of 320,000 private sector jobs a year would have to be created by 2015-16 just to keep unemployment steady at 2.5 million, it said.

CIPD job loss predictions (by 2016)

  • Spending cuts = 650,000 private sector job losses and 725,000 public sector job losses
  • VAT rise = 250,000 private sector job losses
  • Total 1,625,000 jobs
"The full impact of the coalition government's planned fiscal tightening has been understated," said Dr John Philpott, chief economic adviser to the CIPD.
He said the number of public sector job losses cited in the Spending Review looked like "an underestimate, given what most public sector managers are telling [us]".
He put the total number of jobs to be lost in the public sector between 2009-10 and 2015-16 at 725,000.
The number of jobs lost in the private sector due directly and indirectly from the cuts would be 650,000, with an additional 250,000 jobs to go due to the VAT increase, he estimated.
'Tall order'
The CIPD said the private sector was "perfectly capable" of creating more than 300,000 jobs a year, but only if the economy grew faster than 2.5% on average a year.
This, it said, "looks like a tall order".
Initial estimates show that the UK economy grew by 0.8% between July and September, and by 1.2% in the previous three months.
However, most economists expect growth to slow as a result of the spending cuts.
The government has argued strongly that the cuts are necessary in order to reduce the UK's budget deficit, which is one of the highest in Europe.
Reducing debt levels will restore the confidence of international money markets in the UK, and reduce interest payments that are sucking money out of the economy, it says.
"The chancellor has set out a decisive plan to reduce the UK's unprecedented deficit and restore confidence in the UK economy," the Treasury said in a statement.
"Not taking action to tackle this problem would put the economic recovery at risk - a view shared by the International Monetary Fund, World Bank, G20, Bank of England and the OECD."
However, some economists argue that the size and the speed of the spending cuts could undermine the recovery."

Source: BBC

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