What's going to happen if Cameron & Osborne start slashing public expenditure?

Which bunch of economists is right?  Those who say cut public expenditure rapidly - or those who say do it less rapidly?

Richard Murphy provides an easy to understand case study - the likely consequences of rapid cutting are chilling.  He says;

Give or take the public sector employs about 5 million people. If, as is demanded, there should be public sector cuts of 10% then maybe 500,000 people will lose their jobs.

People in work spend and pay tax and they don't need benefits - sacking someone on £25K creates a net loss to the Government of  c.£20,000 - excluding the personal misery and any consequent costs of ill-health etc.

The net direct loss will be 500,000 x £20,000 - and the human misery incalculable (look at what is happening in and around Redcar right now).

Richard Murphy's article is a 'must read' -  click HERE

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