Posted in Resources on February 2, 2011
We’ll be distributing thousands of pamphlets with the message that ‘Cuts are not the cure’ in the run-up to the March for the Alternative.
The new pamphlet argues that the government’s decision to close the deficit in just four years and to do so by cutting four pounds in spending for every pound raised in tax are political choices not put to voters at the last election, rather than economic necessity.
Carefully setting out the difference between the annual deficit and the national debt, the pamphlet explains in straightforward language that the UK’s debt is lower than in most years of the last century, lower than in many other countries and cheaper to service than in almost every year between the end of World War II and 1997. And unlike countries such as Greece or Ireland, the UK has no difficulty servicing its debt, it says.
The government is therefore wrong to say that there is no alternative. The real job of closing the deficit will come from the increased tax raised by economic growth and getting people back to work. But this will require a longer timetable to close the deficit, as the deep rapid cuts imposed by the government will choke off economic recovery.
Cuts are not the cure says that spending cuts and last month’s VAT increase hit the poor and those on middle incomes while a fair tax regime that raises more money from the finance sector through a Robin Hood tax and cracks down on tax avoidance and evasion would be a fairer way of tightening belts.
- Download the new pamphlet in pdf format
- Download an order form to get printed copies for your local group or union branch