The Trade Unions Congress has seen speaker after speaker lining up to denounce the evil, brutish cuts in public expenditure that might result in job losses in the public sector of the British Economy.
There is a couple of problems with that rhetoric: The so-called “cuts” are still being finalised and will not be announced until October 2010. The other problem is the not-so-small Budget Deficit of the United Kingdom and the fact that the UK (and that means all of its citizens) owes an ever-increasing amount of money to international financiers. We have the debt and the interest payments put that debt currently in the region of £900+ bn and rising. The UK is just like someone who is juggling with debt, has a Credit Card and buying everything on the card … the real problem being that the ‘owners of the Credit Card’ is not the UK and the owners will want their money back. The UK could default but then that would be like declaring bankruptcy and the UK would not be able to borrow any more money on the open markets.
After 13 years of Labour Government and policies/decisions we have a bloated public sector which employs spin doctors, diversity consultants and other non-jobs which employ the individual but doesn’t actually contribute to the growth of the UK Economy – dare I say that many of these public sector employees would not be able to get, let alone hold down, a job in the private sector.
Perhaps this is why the UK under Labour has generated a growth in jobs within the public sector – it is one way to get people of the dole queue and into ’employment’ but the problem with that theory is that it takes the tax raised from workers and their firms in the money-making part of the British Economy (the Private Sector) to pay the recruitment and wages of the Public Sector employee – yes, they pay tax but that tax is already taken by the Government, used to fund the Public Sector employees salary and so is not new money. It is recycled Private Sector taxation.
The Trade Unions know that there has to be a rebalancing of the British Economy and that waste will have to be eliminated. The Private Sector has already seen job losses, recession shrinkage, short-week working, noninflationary pay rises and is still struggling to make ends meet especially as the underpinning of Private Sector growth is borrowing money to expand and accumulate orders to achieve more taxable profit – with the shortage of bank lending, the Private Sector continues to struggle.
On the other hand, the Public Sector still, even today, is recruiting people into non-jobs that do not produce economic growth and the money comes from Central Government or through local taxation in the form of Council Tax and Business Rates. This cannot continue indefinitely.
We read today that Fidel Castro’s Cuba is shrinking their Public Sector and dispensing with upwards of half a million jobs – that is the jobs of 500,000 people – on the understanding that Cuba is unable to fund any more public sector jobs. That is communism being now seen to have ultimately failed. However, in the UK, The Coalition government is likely to trigger the loss of jobs somewhere in the region of 150,000 people employed in the public sector yet, the Socialists and Labour Party decry that The Coalition are being brutal. It begs the question as to what those same people think about their erstwhile Hero of the People, Fidel Castro, who has finally awoken to the fact that, although we all need to have a public sector – we need Police Officers, Fire Fighters, Nurses, Doctors, Refuse Collectors, Librarians, etceteras – we simply do not need so many of them.
Cuba has recognised that money does not grow on trees and that an ever-growing bloated public sector has to come to an end.
The UK has to wake up to the same reality as we cannot afford to keep creating jobs that have no value other than as an employment statistic and satisfy a basic human need to feel wanted and gainfully employed even when there is no gainful part of the job.