10,000 public sector jobs have gone from the public sector this last year in Wales according to a report from Accountants PwC and this is only the start, things can get a whole lot worse.
The further fall in Welsh jobs predicted by PwC just adds to the certainty that the Welsh economy will go into further decline and that a weak private sector will do little to mitigate the situation.
According to them they fear that the faltering economic growth, runs a risk of a double-dip recession. And in their report they make a plea to George Osborne to soften his economic policy of cuts pointing out that the private sector just was not producing enough jobs to compensate for those lost in the public sector.
They want the Chancellor to defer cuts on infrastructure and provide tax breaks to small and medium-sized enterprises to take on workers.
George Osborne is not alone in going in for a debt reduction programme the market is demanding debt repayment and that demand has seen savage cuts throughout Europe.
Ireland, Portugal, Spain, Italy and of course Greece have seen massive cuts resulting in much lower living standards.
Of course, the more that budgets are cut it becomes almost impossible for those individuals and companies to earn the money to pay their bills. Debt repayment is less likely to happen.
All politicians are crying out for growth without any sense that it is the policies that they’ve embarked on, that are the biggest obstacles to growth.
Without jobs there is no spend. Without spend there is no growth. Without growth, debts don’t get paid. It’s simple.
President Sarkozy of France decribed what is happening as an ”unprecedented financial crisis.” Who can disagree?
But the first thing to do when you find yourself in a hole is to stop digging. We’re in that hole right now, so the government needs to change tack and quickly, before further harm is done to the economy.
In cash terms there are no cuts, indeed public expenditure is rising.
ReplyDeleteIt is facile to look at Wales in isolation since we are inextricably linked to the English economy which tends to support Welsh private enterprise. What is evident is that WAG pursues policies which are anti entrepreneurship. No wonder, since devolution the country has been run by second rate socialists.
Why do you keep talking about Westminster an George Osborne? Better to direct your comments to the Welsh Assembly, nothing is new here, nothing that has not been planned for a good many years. And yet the Welsh Assembly has done nothing. Scandalous.
ReplyDeleteIf only we had political commentators here in Wales with some of the 'nous' of the sports commentators. Perhaps then we'd have a much better performing economy. But, oh no, not one of you ever wants to seriously question/get up the nose of the inept politicians we have in Cardiff Bay.
RedMist- Wake up mate no-one ever says that Westminster or Parliament have failed or done nothing, but you, in your anti-assembly frame of mind cannot or will not distinguish between the two. The Assembly is the (weak) version of your beloved London Parliament. Your revered Westminster is the UK version of Cardiff bay. Your ire should be directed at the Welsh Government, which has been Labour run since 1997. In Westminster, we have had both Labour and now Tory governments, both of whom in recent times have cocked things up in economic terms. Though I am sure Welsh Labour would have the capacity to do the same here in Wales. Facts and intelligence are wonderful!!
ReplyDeleteThis is a matter of Macro Economic policy, all the leavers there are in the hands of Westminster. The National Assembly for Wales has less power over the Welsh economy than do local council!
ReplyDeleteTosh, the Welsh government has as much power as it chooses to call for. And, in matters economical it chooses to remain silent.
ReplyDeleteWhy?