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Siu Index
Sept/October 2010 No 87

Myths about the ‘crisis’

Myths“Cutting public services will boost the private sector ....” WRONG

For every one job cut in the public sector at least one is lost in the private sector. (Treasury report Guardian 29 June) Cuts don’t just damage essential services, they damage the whole economy.

About 70p of each £1 a public service worker earns is spent in their own community. Pay cuts and job losses will damage local businesses and local jobs.

“The national debt has never been higher... we can’t afford public services and benefits.....” WRONG

The national debt was proportionately four times higher in 1948 but the government could still afford to introduce the NHS, the Welfare State and a huge house building programme! www.ukpublicspending.co.uk

“Cutting public spending will get us out of recession....” WRONG

Recent reports from the International Monetary Fund and the OECD warn that cuts are grinding the whole economy down, risking the disaster of a double-dip recession. The last three month trade gap was the worst on record (Guardian 9 Sept, Herald 11 Sept). Public services and industry need investment not cuts!

“We’re all in this together....” WRONG

The poorest families will be hit five times worse than top earners by government cuts (Institute for Fiscal Studies August 2010). Meanwhile bankers go on collecting bonuses, top businesses go on paying no corporation tax and billions are lost through tax avoidance by the very rich.

Drawn with thanks from ideas and information from participants in this year’s UNISON National Leadership School

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