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Red Pepper: Countering the cuts myths

Download "Countering the cuts myths"
The new issue of Red Pepper magazine includes an essential guide to debunking the myths used to push public service cuts.

You can download the guide for free in pdf form (or read it online at Red Pepper) – and I urge readers to distribute it far and wide. But why not do your bit to stimulate the economy by investing in a Red Pepper subscription too? The latest issue includes much more on fighting the cuts. Visit for details.

Much of the research for the Red Pepper guide was done by Dr Alex Nunn of Leeds Metropolitan University, whose own paper is worth reading for its additional analysis and data.

Posted by Other TPA at 11:40pm on 5 August 2010
Tags: Cuts,Deficit,Economy

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In a similar vein, this TUC guide is also very good:

Posted by Clifford Singer at 10:53am on 6 August 2010

There are two obvious flaws with this paper.

1 It doesn’t mention the indebtedness of the UK population. As McKinsey have shown, when you add up *all* the UK debts, including household debt, mortgage debt, business debt etc, the UK is the most indebted nation in the world. Since taxpayers fund the national debt, this anreally important consideration when calculating how much money the government can borrow (In 1945 the government could borrow more as the people weren’t struggling under credit card debt,  for example).

Here’s the report:

2 The interest on the national debt. No mention of it? I wonder why! In fact we’ll be paying around £75bn a year in interest on the national debt in 2015, and the interest payments will soar as gilt yields rise due to a shortage of capital caused by demographic changes. Barclays Equity Gilt Study forecasts yield rates rising to 10 per cent within a decade!

Both of these factors suggest we need to be seriously careful about increasing the debt. Naturally, both are ignored in this study.

Posted by Charles at 06:27pm on 7 August 2010

If you are going to argue against cuts, then you really need to come up with a financially sound plan.

You can’t just ignore certain debts and shortfalls, it undermines the foundation of your argument.

Posted by bob at 10:36am on 8 August 2010

Charles (nor Bob)  obviously didn’t read the Red Pepper pamphlet in full as it does address the question of how to overcome the structural deficit but in a way that is socially progressive and lays the foundations for an alternative economic model. He fails to recognise the politics associated with the current government’s (and Labour’s) proposals, as well as those from the financial sector that he cites. It’s not a question of the crisis being resolved painlessly but, rather, in a way that fairly apportions the burden, addresses some of the key inequities that have emerged within Britain over the last 30 years and boosts growth and employment.

Posted by Rick at 03:31pm on 9 August 2010

The mess was made entirely by the rich kids in the worlds major trading centres getting high on gambling with bank money that wasn’t theirs.
Why not tax the entire lot of them at 95% until the debt is paid in full!

Posted by Greg at 02:40pm on 12 October 2010

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