well, yes, and I guess that's part of the trade-off we're going to see

remember, we've already *seen* a million jobs go. That means higher benefit spending, as well as lower tax revenue.

So yes, part of the cuts to offet those effects are through fewer public sector jobs. Which, in the short run at least, may add to unemployment, but as you say, benefits are lower than wages.

(Of course, no-one knows how long unemployment is going to stay higher than it was pre-recession for.)

Posted By: Tricky Hawes on November 19th 2010 at 16:23:48

Message Thread

Oh. He's gone. (General Chat) - Tricky Hawes, Nov 19, 15:09:55
- Good (General Chat) - Old Git, Nov 19, 15:21:16
  - well, government spending is actually gonna carry on rising (General Chat) - Tricky Hawes, Nov 19, 15:39:04
    - Which is baffling to me (General Chat) - Old Git, Nov 19, 15:48:37
      - It is confusing (General Chat) - duke of york, Nov 19, 15:50:22
        
        see below for some of the reasons. (n/m) (General Chat) - Tricky Hawes, Nov 19, 15:52:41
  - I think you can spin the cuts anyway you want really, depending on your leanings. (General Chat) - Arizona Bay, Nov 19, 15:37:44
    - Exactly (General Chat) - Old Git, Nov 19, 15:47:30
      - So, like, if your tax rate went up by 10% a year (General Chat) - duke of york, Nov 19, 15:55:20
      - well, in part, inflation (General Chat) - Tricky Hawes, Nov 19, 15:51:47
        
        Interesting, thanks (General Chat) - Old Git, Nov 19, 15:56:21
        
        well no, not really (General Chat) - Tricky Hawes, Nov 19, 16:01:34
        
        But if the hike in unemployment comes from state sector jobs being shed (General Chat) - Old Git, Nov 19, 16:16:55
        
        well, yes, and I guess that's part of the trade-off we're going to see (General Chat) - Tricky Hawes, Nov 19, 16:23:48
        
        Oh I see (General Chat) - duke of york, Nov 19, 15:53:43
        
        yup. and we're still spending less than we 'would have' (General Chat) - Tricky Hawes, Nov 19, 15:57:37
      - The ?9billion put aside incase Ireland goes tits up? (n/m) (General Chat) - Huge Small, Nov 19, 15:50:54
    - And those with decent, secure jobs and tracker mortgages (General Chat) - duke of york, Nov 19, 15:46:01
    - indeed. (n/m) (General Chat) - Tricky Hawes, Nov 19, 15:39:23

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