So, this one that Caroline Lucas (the original calcs done by you know who) has come out with. That sacking 490,000 civil servants will cost more than employing them. For the benefits that have to be paid will be higher than the wages.
In any case, surely this cannot be right, if you consider the implied microeconomic situation. For if the government saves net salary but loses unemployment benefit and the total is negative, then the employee\’s calculation is identical but with a minus sign attached: in other words, the employee would be better off being sacked and going onto benefits. Of course, in the famed 490,000 there may be some for whom this is not true; but if Lucas is right, then there must be a great number for whom it most certainly does hold. But then, what to make of the fact that we do not see masses of public servants spontaneously deciding that they would be better off out of work?
Pisses all over Ritchie\’s chips, doesn\’t it?