If 67,000 public sector jobs have been lost then isn't this a saving on the public purse? The left are saying that it is increasing the deficit as the government is having to pay out more in benefits as people lose their jobs due to lack of growth.
Err after tax earnings for public sector workers is alot more than the cost of benefits..... surely. This reminds me of the trickle down affect that was sort of shown not to work in the 80s. This is where the right said rich spend would help the poor. Public sector workers spend is not helping the economy that much either.
Social problems that high unemployment generates is a different matter and that costs.
The labour party need to concentrate more on the social costs of unemployment as opposed to the economic costs as their arguments don't really work. The are socialists after all not economists! This might explain why they are behind in the polls.
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