Thursday, 20 October 2011
More jobs to go
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.