The BBC has reported:
The government is to announce further spending cuts in Wednesday's Budget, with the savings going to large-scale infrastructure projects designed to boost economic growth.
Most Whitehall departments will have to cut 2% of their spending over the next two years, amounting to about £2.5bn.
But health, schools and HM Revenue & Customs budgets will be unaffected.
The cuts come on top of the 3% spending reductions announced for the next two years in last year's Autumn Statement.
The is clueless economics.
We don't need to do a shuffle between government departments at this moment, resulting in immediate loss of jobs and spending power in some to release some extra potential spending in others in the future. What we need is an absolute increase in government spending right now and Osborne has got things badly wrong again.
This pl;an can only make recession more likely. Sucking money out of the economy with immediate effect - which it will do - is the last thing we want.
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Can’t you do the whole country a favour +[forcefully if necessary] sit him down+ properly educate him??
Oh, hang on, that presupposes he wants to learn+ ISN’T actually in charge of one aspect of a controlled demolition that extends the Neo-Liberal Neo-Feudal agenda+ sets up+ continues a fire-sale for the upper percentiles.
I’m sure he’s not though anyway. Forget what I said, carry on. The rest of us are listening. 😉
When Osborne says large-scale infrastructure projects he means he’s giving our money to his business chums. It’s a pseudo-respectable way of taking from the poor and giving to the rich. Well, the more it goes on the sooner people will catch on. Maybe I should add popcorn to my list of prepper essentials 🙂
This is my view. The austerity agenda is merely a fig leaf to move as much money from the public sector into the private.
Much of the Health & Social Care Act was written by the private health industry or spokesmen for the private health industry, for god’s sake!
http://www.bbc.co.uk/news/business-21740450?SThisFB
@JohnM – Unsure what point you are trying to make, as you haven’t glossed this reference, but if you’re trying to suggest the rich are being hit harder than even the poorest, using just percentages, then I think this post http://bishopalan.blogspot.co.uk/2013/03/cyril-says-beware-percentages-my-son.html (pointed to in this post from Richard’s Blog http://www.taxresearch.org.uk/Blog/2013/03/12/the-reasons-bishops-have-said-what-they-have-is-maths-not-marxism/) more than adequately explains why crude percentages are inappropriate tools, once you get down to marginal incomes – by which I mean incomes on the margin of real poverty. Put simply, a 10% loss on an income of £100k is nothing like as significant as a 5% loss on an income of £10k.
The raw stats also ignore that many well off shelter income as capital gains and through companies at lower tax rates
The IFS are playing the percentages game again! In real terms, will the richest notice the fall as much as the poorest? I doubt it!