Cuts bulletin

http://www.cles.org.uk/files/105986/FileName/No.75-Publicsectorandlocalgovernmentcuts.pdf

The following link is to my paper on the impact of cuts on local government and the public sector. In it I look at different relationships between public sector spending and the economy...

Public Spending and the Economy

1	+P	:	+E	=	Growth of both public spending and Economy
2	+P	:	-E	=	After the crash
3	-P	:	+E	=	Private sector grows makes markets from public withdrawal
4	-P	:	-E	=	“doom loop” Double dip

Position 1 was arguably the approach of the Labour government in the UK from 1997 up until the recession began in 2008 public spending expansion is connected with economic growth in the ‘good times’

Position 2 was arguably the approach of the new labour during the recession and the position of the Obama administration in the US. This reflects the need for public stimulus as a corrective in the recession.

Position 3 is arguably the position of the coalition. Public sector cuts designed to stimulate private sector growth.

Position 4 would represent a failure of this strategy as public sector cuts would contribute to an overall contraction of both sectors.

Would love some feedback on the use of this heuristic...