The most spectacular failure, however, is in the government’s central economic objective – for which all the pain was supposed to have been endured. After four years in office, the budget deficit and debt are growing, when the original plan had the books as good as balanced by now. The government’s core policy has failed on its own terms – let alone anyone else’s.
A crucial factor in that failure is falling wages and job insecurity. Cuts in real pay and growing low-wage employment have meant lower tax receipts and greater demand for benefits. Almost all the pain of benefit cuts for the most vulnerable has come to nought.
If cuts aren’t working, and low pay and insecurity are shrinking tax revenues and boosting benefit costs,
Well, if benefits have been rising and tax revenues falling, thus the deficit is till blowing out and the national debt rising, then what cuts have there been?
Has government spending fallen in nominal terms? Cash terms? Real terms? So, what cuts?