Public sector job losses equalled by Private sector job loss

[Corsair7]

At last someone has relaised that if you take many billions out of the economy by reducing the Public sector, that money which eventually all gets into the private sector in terms of spending from wages, purchasing, contracts, supplies etc etc will cause just as many job losses in the private sector.

http://www.bbc.co.uk/news/business-11530811

Those that have been saying all along that the private sector will absorb these job losses need to wake up and smell the roses, because they are not going to. Money goes round in cricles in our economy, break that circle and everyone gets affected.


Add a million people to the unemployment line will also exacerbate the housing price crash, so even if you dont lose your job you will face the prospect of your major asset being reduced in value, I hope you've got sufficient equity.

Job loses are already being felt. I work in a company supplying business sevices (IT) to many public sector bodies. 1350 additional job lossess were anounced yesterday, and the contractors have just been told they face yet another squeeze on rates of 10% in addition to the 25% sufferred last year.#


Everyone loses out, not just those in the so called 'non-job' public sector.

[s2art]

And the alternative is......?

[sidicks]

s2art said:

And the alternative is......?

There isn't one!

Sidicks

[HardToLove]

Sorry Corsair7 but your wasting your time here, some "Bright Spark" will say the usual BBC propaganda etc . Unles its the daily mail etc its all nonsense

[rich1231]

s2art said:

And the alternative is......?

More tax, more spending

Good idea Corsair. Not.

I hope everyone in non essential public services -- which is pretty much everyone, out of a job by christmas.

Merry Christmas.

[s2art]

Just to add; Public spending is not actually being cut much.

From Redwoods blog;

Will there be “cuts” when total public current spending is planned to increase by £92.5 billion over the next five years, rising every year during that period? Apparently so.

I guess there will be four sorts of cuts.

1. Sensible cuts because we do not need the public sector to do certain things. The end of ID cards, regional government and some quangos fall into that category for me.

2. Cuts in large planned increases in spending which the Labour government left in the plans but never had the money to carry through. Much defence procurement lies in this category. Labour kept reducing planned spending growth in defence, but left a long wish list of items they wanted to buy for a future date.

3. Cuts brought about by poor public sector management. Clearly there will be parts of the public sector that cannot manage within overall cash increases of 15% over five years. They are getting their retaliation in early, and claiming they will need to cut all sorts of things in order to live within the new tighter spending controls. It would be good if Ministers and Councillors would challenge this more, and show how it is possible to do a good job within the moderate cash increases available.

4. Cuts brought on in certain departments because other programmes are going to grow, taking up more of the increases in the totals than their proportion of spending. The EU budget, Overseas Aid, Health and debt interest programmes might all fall into this category.

So what can the government do to manage the process better?

1. The government should do more to explain that spending overall is rising, not falling. That makes public sector management easier, and should help morale. Too many people think the overall budget is being cut by 25% in cash terms, which is simply ludicrous.

2. The government should explain that Labour’s preferred medicine of more taxation is not feasible. Tax revenue is planned to go up by £176 billion a year in Year 5 compared with the last Labour year. That is a massive increase, which requires growth and good performamce from the private sector to deliver it. Taxing more would make it impossible.

3. Reduce the number of protected areas – especially by telling the EU that the EU budget and the UK contribution should go down, not up, in current circumstances. Sell more assets to reduce the amount of new debt taken out, thereby cutting the amount to be spent on interest on debt.

4. Find new ways to encourage and lift public sector managers so they can deliver good services for the modest extra sums on offer. Stop the language of gloom and cuts.

[Bing o]

The problem is that there will/can be no corresponding tax cuts to stimulate the money supply. The workers will still have less and less cash to spend, and there will be mre people not contributing. The next few years are going to be very tough for everyone.

[Oakey]

s2art said:

And the alternative is......?

Just press 'print' on the BoE laserjet and run off more cash, obviously.

[rich1231]

Bing o said:

The problem is that there will/can be no corresponding tax cuts to stimulate the money supply. The workers will still have less and less cash to spend, and there will be mre people not contributing. The next few years are going to be very tough for everyone.

No they are not.

[CoopR]

Corsair7 said:

Those that have been saying all along that the private sector will absorb these job losses need to wake up and smell the roses, because they are not going to. Money goes round in cricles in our economy, break that circle and everyone gets affected.

The circle is already broken! There's been massive private sector job losses and pay freezes since 2008.

Honestly what is the alternative?

[fido]

Bing o said:

The problem is that there will/can be no corresponding tax cuts to stimulate the money supply. The workers will still have less and less cash to spend, and there will be mre people not contributing. The next few years are going to be very tough for everyone.

And if we don't reduce the structural deficit (left by Nu Labour) then the UK will lose it's AAA credit rating, possibly go the way of Greece, huge interest rate hikes or will print money like it's going out of fashion = hyperinflation. I would rather have some sensible cuts to public spending, coupled with inevitable tax rises. Tough choice, but a simple one.

[Corsair7]

CoopR said:

Corsair7 said:

Those that have been saying all along that the private sector will absorb these job losses need to wake up and smell the roses, because they are not going to. Money goes round in cricles in our economy, break that circle and everyone gets affected.

The circle is already broken! There's been massive private sector job losses and pay freezes since 2008.

Honestly what is the alternative?

I know, thats where I am. I'm just a bit sick of people on here thinking its only 'public sector' employees that are going to get f**ked when the reality is its probably th private sector thats going to really bare the brunt of it.

I so hope that some of these twunts in their ivory towers get they're reality checks through the post soon.

[plasticpig]

Corsair7 said:

Job loses are already being felt. I work in a company supplying business sevices (IT) to many public sector bodies. 1350 additional job lossess were anounced yesterday, and the contractors have just been told they face yet another squeeze on rates of 10% in addition to the 25% sufferred last year.#


Everyone loses out, not just those in the so called 'non-job' public sector.

That's hardly a surprise though. Most public sector IT contracts have been dismal failures and a huge waste of public money. Sir Philip Greens report makes it clear that the government have been ripped off by the large outsourcing firms. It has needed cleaning up for years and we appear to have a government who willing to get that done.

Edited by plasticpig on Wednesday 13th October 11:36

[TankRizzo]

Corsair, I think you'll be ok in your 'neck of the woods' - our industry not affected apparently. Can't be "best-shored".

[RichardD]

anonymous said:

[redacted]

You know the answer to that though don't you! It has already been listed on this topic, along with potential/probably consequences hasn't it.

I do wonder though if the average person does think money is magic and hence its method of coming into existance doesn't matter

I expect you to respond to this post by sending a link to something from The Daily Mash

[Adrian W]

Corsair7 said:

Those that have been saying all along that the private sector will absorb these job losses need to wake up and smell the roses, because they are not going to. Money goes round in cricles in our economy, break that circle and everyone gets affected.

Nope! in our economy money goes to China and the low cost regions, thats a huge part of the problem

[Oakey]

RichardD said:

anonymous said:

[redacted]

You know the answer to that though don't you! It has already been listed on this topic, along with potential/probably consequences hasn't it.

I do wonder though if the average person does think money is magic and hence its method of coming into existance doesn't matter

I expect you to respond to this post by sending a link to something from The Daily Mash

Pretty sure that's the case. Money = Paper = endless supply!!! Just press print!!

[CoopR]

For sure Corsair you've got to be pretty ignorant to assume it'll only be the government non-jobs that get hit.

I know IT contractors get a hard time when it comes to working on government IT projects but if your business is reliant on public sector contracts then of course pain is coming.

[dilbert]

Corsair7 said:

At last someone has relaised that if you take many billions out of the economy by reducing the Public sector, that money which eventually all gets into the private sector in terms of spending from wages, purchasing, contracts, supplies etc etc will cause just as many job losses in the private sector.

http://www.bbc.co.uk/news/business-11530811

Those that have been saying all along that the private sector will absorb these job losses need to wake up and smell the roses, because they are not going to. Money goes round in cricles in our economy, break that circle and everyone gets affected.


Add a million people to the unemployment line will also exacerbate the housing price crash, so even if you dont lose your job you will face the prospect of your major asset being reduced in value, I hope you've got sufficient equity.

Job loses are already being felt. I work in a company supplying business sevices (IT) to many public sector bodies. 1350 additional job lossess were anounced yesterday, and the contractors have just been told they face yet another squeeze on rates of 10% in addition to the 25% sufferred last year.#


Everyone loses out, not just those in the so called 'non-job' public sector.

If you have a private company, and it's only customer is the government, is that really a private company?

[AndrewW-G]

Corsair7 said:

At last someone has relaised that if you take many billions out of the economy by reducing the Public sector

Please correct me if I'm wrong, but doesn’t the money to pay for the public sector come out of taxation of the private sector? (Ok in the case of labour/brown economics, huge chunks are borrowed and then paid back, with interest!) . . . . . . Therefore all they are doing by reducing government spending is reducing the amount of taxation paid, or debt the country owes.

IMHO, vast swathes of the public sector are simply schemes to reduce the number of unemployable people in the UK . . . . . . . I’ve worked in the dim and distant past as a consultant to both local and national government organisations and without exception, at least 50% of the people employed within them are completely and utterly useless and in many cases, this comes with a large side order of malicious, jealous and vexatious behaviour, which coupled with terrible leadership from Westminster, leads to the massive cock-up’s and overspending that we've all seen in the past 13 years