So it seems that the brilliant plan to save our economy is actually not very brilliant at all. In fact, it’s not even really a plan. The current state of affairs is a convenient excuse for the Tories to bring in long-desired ideological changes, the ultimate goal being to destroy the public sector and replace it with private companies all bidding for contracts to provide public services. They couldn’t get away with it in the past, but now, with everyone worried about their jobs and future, this is the best chance they’ll ever have. Of course, they need to turn public opinion against the public sector workers, which they’ve managed to do with well-timed and economical-with-the-truth press releases.
So now there is a convenient scapegoat on which to place the blame for our financial woes. And it’s the scapegoat they always wanted.
So, the master plan then. Get rid of the public sector workers. They will all get jobs in the private sector, or start up their own businesses, get rich and vote Tory. All these new entrepreneurs, and new private sector workers will start beavering away making lots of things for us to buy and the economy will recover. Seriously. That’s the plan. But it won’t happen, and it’s down to one thing. Fear.
Sales are down ie no-one is buying anything. Businesses can’t get credit, no doubt partly because the banks are reluctant to lend, but I’d imagine it was always difficult to get a business loan when sales are falling because there is no demand. So companies are cutting costs and letting people go. The knock on effect is that the people working in the private sector are scared to spend money because they don’t know what the future holds. So they’re hunkering down and preparing for the worst. They’re not buying anything.
Around 20% of the workforce works in the public sector. They are being sacked left right and centre with the promise of more to come, so the result is that the ones still in a job are also too scared to go out and spend money. They’re not buying anything either.
What about exports ? Well, most of Europe is skint as well, and the recent strength of the Pound vs the Euro isn’t going to help. So that’s someone else who’s not buying from us.
It begs the question then, where are all these sacked public sector workers going to find work ? Are private companies going to hire them to make nothing ? Are they all going to start their own businesses making things nobody wants to buy ? Maybe, but they won’t be able to get any startup finance because, remember, the banks aren’t lending, and even if they were it wouldn’t be to a risky new startup business in uncertain economic times. The truth is that a lot of them will end up on benefits – housing benefit, job seekers allowance etc etc.
On Newsnight a Nobel Prize-winning economist came out and said that austerity is not going to work, in fact it’s only going to make things worse, and for longer. Our current economic conditions are wrong for an austerity based solution. Also on the show were a venture capitalist (Tory) and a Tory MP. They both told him he was wrong and referred him to the master plan which I’ve laid out above. If that’s all they’ve got then we are all well and truly screwed.
So now there is a convenient scapegoat on which to place the blame for our financial woes. And it’s the scapegoat they always wanted.
So, the master plan then. Get rid of the public sector workers. They will all get jobs in the private sector, or start up their own businesses, get rich and vote Tory. All these new entrepreneurs, and new private sector workers will start beavering away making lots of things for us to buy and the economy will recover. Seriously. That’s the plan. But it won’t happen, and it’s down to one thing. Fear.
Sales are down ie no-one is buying anything. Businesses can’t get credit, no doubt partly because the banks are reluctant to lend, but I’d imagine it was always difficult to get a business loan when sales are falling because there is no demand. So companies are cutting costs and letting people go. The knock on effect is that the people working in the private sector are scared to spend money because they don’t know what the future holds. So they’re hunkering down and preparing for the worst. They’re not buying anything.
Around 20% of the workforce works in the public sector. They are being sacked left right and centre with the promise of more to come, so the result is that the ones still in a job are also too scared to go out and spend money. They’re not buying anything either.
What about exports ? Well, most of Europe is skint as well, and the recent strength of the Pound vs the Euro isn’t going to help. So that’s someone else who’s not buying from us.
It begs the question then, where are all these sacked public sector workers going to find work ? Are private companies going to hire them to make nothing ? Are they all going to start their own businesses making things nobody wants to buy ? Maybe, but they won’t be able to get any startup finance because, remember, the banks aren’t lending, and even if they were it wouldn’t be to a risky new startup business in uncertain economic times. The truth is that a lot of them will end up on benefits – housing benefit, job seekers allowance etc etc.
On Newsnight a Nobel Prize-winning economist came out and said that austerity is not going to work, in fact it’s only going to make things worse, and for longer. Our current economic conditions are wrong for an austerity based solution. Also on the show were a venture capitalist (Tory) and a Tory MP. They both told him he was wrong and referred him to the master plan which I’ve laid out above. If that’s all they’ve got then we are all well and truly screwed.