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Siu Index
July/August 2010 No 86

BUSTING THE CUTS MYTHS: THERE IS AN ALTERNATIVE

As even the Scottish Chambers of Commerce are saying businesses expect public sector cuts will ‘dampen’ the economy, it is time to question again the ideology that has the media conned into believing there is no alternative.

Economists across the world are questionning whether the cuts are are really needed and whether selective figures are being used an excuse to savage the public sector for ideological, rather than economic reasons.

UNISON’s ‘alternative budget’ points out that this is no time for cuts – we need to invest in jobs and services to recover from recession and build a fairer society.

We can afford the services we need – if we cut out real waste and make the banks, big corporations and the super rich pay a fairer share in tax.

The financial crisis and recession were not caused by excessive public spending. They were the consequence of reckless borrowing and lending in the private sector. When did the problems caused by them become the fault of the public sector?

The coalition government talks as if public borrowing was the main problem. But economists say our expected debt levels are sustainable.

Former Bank of England economist Professor David Blanchflower has warned that cuts to public spending could send us back into recession and push unemployment to 5 million. Until growth and employment have fully recovered, it is right that the government uses public debt to finance necessary spending.

Download UNISON’s alternative budget for recovery at unison.org.uk/acrobat/18887.pdf See links to economists challenging the cuts at the ‘mythbuster’ section of the unofficial blog unisonactive.blogspot.com

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