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Half of new jobs are created by the state watch

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    NEARLY three-fifths of the growth in jobs under Labour during a decade in power was directly or indirectly created by the state, new research shows.

    Across the country as a whole, it says 57% of new jobs created during the period 1997-2007 were state or “para-state” — dependent on government spending . [...]

    In all, the researchers calculate that of the 2.24m jobs created in Britain under new Labour until 2007, fewer than 1m were true private sector jobs, while 1.27m were in this wider public sector. In the West Midlands there was a net fall of nearly 37,000 in private sector jobs, offset by a 105,000 rise in state and para-state work. In the northeast, 79% of new jobs were state-dependent, compared with 41% in London and the southeast.
    http://business.timesonline.co.uk/to...cle7009695.ece

    A good electoral strategy by Labour, but a very worrying situation for the country as a whole. The government ran a budget deficit during 7 of the 10 years in question, despite the economy growing, and economists almost unanimously agree that budget deficits during growth crowd out private investment. This means that these jobs have been funded at the expense of comparatively lower real wages for British workers in the future. Also, when the budget is eventually balanced, many of these jobs will not be funded, so we'll also see a rise in unemployment.

    Lower wages and fewer jobs - not my idea of a successful government, but then again, they probably thought they wouldn't be in power when the piper had to be paid. A shrewd strategy, but quite reprehensible.
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    Ahhh Big Government...

    We must run and hide in a distant land, kill the natives and call it our own...
    Oh crap big government followed us here Let's dump their tea in the river...

    OH no the tea!!!!

    Hmmm, America is doing great.

    But in all seriousness, this is outrageous. Damn government!!
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    labour increases state-provided services?! :eek: who would have expected that?!
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    (Original post by inyourhouse)
    The government ran a budget deficit during 7 of the 10 years in question, despite the economy growing, and economists almost unanimously agree that budget deficits during growth crowd out private investment. This means that these jobs have been funded at the expense of comparatively lower real wages for British workers in the future.
    TBH it was the growth in GDP that allowed the UK to borrow further.

    During growth UK unemployment (people on JSA anyhow) went down to 850,000, we were importing labour. How did it crowd out private investment/where are the examples of that?
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    Fantastic achievement, we need to make it more attractive for businesses like "The State" to invest in the UK! "The State" is providing as many jobs for British workers as the entire rest of the private sector put together.

    I think we need some more state-friendly policies, imagine if "The State" decided to pull out of the UK and invest somewhere else, half of the economy would collapse.

    This IMO is the trickle down effect working at its best. As the State grows, as the State gains more revenue and becomes more profitable for those at the top, their wealth trickles down in the form of employment. The State is a model of a successful business which all others should follow.
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    (Original post by MagicNMedicine)
    Fantastic achievement, we need to make it more attractive for businesses like "The State" to invest in the UK! "The State" is providing as many jobs for British workers as the entire rest of the private sector put together.

    I think we need some more state-friendly policies, imagine if "The State" decided to pull out of the UK and invest somewhere else, half of the economy would collapse.

    This IMO is the trickle down effect working at its best. As the State grows, as the State gains more revenue and becomes more profitable for those at the top, their wealth trickles down in the form of employment. The State is a model of a successful business which all others should follow.
    'The State' also spends £620bn, but is only paid £435bn.

    The trickle down only works if nobody in the UK buys anything from outside the UK.

    (edit btw that includes buying money from abroad)
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    (Original post by Quady)
    'The State' also spends £620bn, but is only paid £435bn.
    Wonder how the figures would balance without spending on propping up the banks, paying for Trident and financing wars in Iraq and Afghanistan
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    [img] airbrushed cameron.jpg[/img] We can't go on like this
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    (Original post by MagicNMedicine)
    Wonder how the figures would balance without spending on propping up the banks, paying for Trident and financing wars in Iraq and Afghanistan
    Only around £100bn (orders of magnitude around that) down. The MoD is only 44bn in total you know.

    What would you do with the 125,000 people made unemployed by doing that?
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    Shows just how deep the rot has set now, who's going to vote for a party that would turf them out of their non-job?

    You can bet your life on it that these new jobs aren't as police, doctors, armed forces, nurses, etc, but probably "Diversity Officers" on 35kpa, and other ****-stain jobs, you know, the ones advertised in the Guardian each week.:rolleyes:

    Why is an every more bloated public sector a problem? Because public sector jobs are paid for out of taxation on the private sector, the same as any person on the dole, so the more people in the public sector means a government must either place more burden on the private sector to pay for this, or borrow, which costs money in interest payments.

    In the northeast, 79% of new jobs were state-dependent, compared with 41% in London and the southeast.
    Sort of explains why the South of England doesn't vote Labour whilst the North does.
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    (Original post by MaceyThe)
    Sort of explains why the South of England doesn't vote Labour whilst the North does.
    Sort of, but its also due to the administration that was in power when a lot of the private sector went.
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    And people wonder why I think they buggered up the economy.
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    (Original post by MagicNMedicine)
    Fantastic achievement, we need to make it more attractive for businesses like "The State" to invest in the UK! "The State" is providing as many jobs for British workers as the entire rest of the private sector put together.

    I think we need some more state-friendly policies, imagine if "The State" decided to pull out of the UK and invest somewhere else, half of the economy would collapse.

    This IMO is the trickle down effect working at its best. As the State grows, as the State gains more revenue and becomes more profitable for those at the top, their wealth trickles down in the form of employment. The State is a model of a successful business which all others should follow.
    This is a joke, right?

    (Original post by Joy Division)
    [img] airbrushed cameron.jpg[/img] We can't go on like this
    Are you suggesting that we can go on like this?
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    (Original post by Quady)
    Only around £100bn (orders of magnitude around that) down. The MoD is only 44bn in total you know.

    What would you do with the 125,000 people made unemployed by doing that?
    125000 more people into the labour force for the private sector
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    (Original post by MagicNMedicine)
    125000 more people into the labour force for the private sector
    Yeah, smart one. Why not sack all the nurses, police and fire-fighters whilst you're at it, then we'll have millions of extra potential employees for the private sector's.:rolleyes:

    Oh, that's right, manufacturing's in decline, we've already got millions of unemployed, and many private sector companies and services are now fleeing the country, because of the increasing red-tape and tax burden placed on them by the government, to pay for -you guessed it - the government! and it's increasing public sector and welfare dependency!!!
    A public sector that - in contrast to the private sector - is becoming less and less productive each year. Well done Labour!

    The armed forces are necessary to provide safe and stable conditions within our borders, that are attractive for investors and private companies to flourish and allow for wealth creation, but why pick on the squaddies though? They are some of the lowest earners, earning £15,000 a year - less than a traffic warden - risking life and limb fighting politician's wars only to be treated like **** when they get back.
    Did you know there is 1 MOD bureaucrat for every 2 soldiers in the armed forces? Why not sack some of the pen-pushers?.....

    How about this MOD official who got AN £84,500 BONUS!!!!
    http://www.telegraph.co.uk/news/news...500-bonus.html
    Farkin disgusting, public "servants" my arse!:mad:

    Always when the cuts come, it's the people at the bottom that suffer, the soldiers, the street-cleaners, that have their pay cut, whilst the fat-cats and ministers keep their hugely inflated salaries, pension pots and bonuses.

    What about some of the "quangos" such as the Equality and Human Rights Commission or the RDA that costs Britain around £90 BILLION a year yet provide appallingly bad value for money and little benefit??? http://www.telegraph.co.uk/news/news...hold-3640.html
    http://www.lgcplus.com/news/lga-name...008507.article

    How about the Local Government spending watchdog stop spending £60,000 of taxpayers money lobbying a firm for advice on how to undermine Tory frontbenchers who challenged its activities?
    http://www.timesonline.co.uk/tol/new...cle7009751.ece
    ^^Just look at the salary+pensions mentioned in that link, a staggering amount of money.

    EDIT: I think you're actually not being serious?! Irony/sarcasm isn't easily transmitted over t'interweb.
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    (Original post by MagicNMedicine)
    125000 more people into the labour force for the private sector
    Why the private sector? Surely what you were saying was that the public sector should expend as a % of the economy...?
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    Yes but you were pointing out that there was an overspend. Even thriving businesses like "The State" occasionally have to streamline their workforce.
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    (Original post by MagicNMedicine)
    Yes but you were pointing out that there was an overspend. Even thriving businesses like "The State" occasionally have to streamline their workforce.
    So the state doesn't take them on then?

    So the state does need to shrink relative to the private sector?
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    Hmm maybe you're right. It would be better if it didn't shrink, it needs to become more profitable. Increase tax.
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    Labour's cunning plan of using the boom years get the state to employ as many people as possible, so that when the inevitable bust arrives, a huge fraction of the population must vote for them or lose their jobs. Ruining the UK's economy to maintain their voter base. In the long run we will all lose, but Labour get to keep power for a little bit longer.
 
 
 
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