Don't say he did not warn you
David Davis, writing in the FT, sets out Tory policy:
The first stages of an austerity regime, involving pay and recruitment freezes for the entire public sector, will be controversial and uncomfortable.It is likely that this will be policy for the next government, and it scares me rigid.
Labels: Politics, Public spending
posted by David Murphy at 06:56
2 Comments:
Why would that scare you?
If workers in the private sector are having their pay frozen why shouldn't the public sector?
Because it amounts to constrictive fiscal policy which will make the contraction more intense and long lasting. The state needs to spend now for the sake of the whole economy.
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