Is ‘Austerity’ intended to increase unemployment and suppress wages?

Think Left

By Payguy

Osborne and Cameron are organising a slump to increase unemployment and supress wages – a price they consider worth paying – to increase profit margins for Tory donors and the interests of the super wealthy.

We should certainly take no lessons from the current Government who are badly misleading the public about the economy in a way that is certainly immoral and evil, and verges on treasonous.

Take a look at the following graphs –

http://blogs.ft.com/martin-wolf-exchange/2011/12/05/understanding-sectoral-balances-for-the-uk/#axzz1upLum1Lt

The private sector is deleveraging. Households, private sector companies and banks are all reducing economic activity and hoarding cash (£650 billion of it). In this circumstance the state has no choice but to make good the difference. It is not a choice. It is an accounting law.  See the graph showing a perfect relationship between private sector surplus and public sector deficit (including trade deficits).

Until Osborne puts in place policies that…

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