Only way to cut Government debt is to increase Government spending
13 January 2010
He calculates that 92% of the cost of cutting a £25,000 a year job, when we have less than full employment, is paid by the state.
His reasoning can be found here.
Even if you reject his calculations he does make the important point that cutting civil servants or indeed any other public sector worker costs more than just the redundancy pay out. The election of New Labour or the Conservatives or any conceivable combination of either with the Lib Dems will mean staff cuts. The alleged savings made by these cuts will be much less than claimed. This is a key point that the Union will have to make. For the Civil Service, cutting staff is almost a matter of transferring costs from a department where they are employed to that of the DWP when they are unemployed.
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