14 June 2010

Public Debt and Expenditure Cuts

Much of the debate is constructed around false alternatives: unsustainable public indebtedness OR cut the services and incomes of the least well-off.

Yes, public debt levels do need to be reduced, but that can be done in ways that do not leave the worst-off relatively worse off. There should be tax increases on wealth and income and cuts in those areas which do not injure the worst-off or impede future economic growth; e.g. tax rebate on private pension contributions, or the defence budget.

Real differences of class interest are being hidden behind a false alternative, an alternative which is repeated again and again by the media.

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