The Coalition’s big economic idea is that significant cuts in public sector employment will be more than compensated by a veritable blossoming of the private sector. Displaced public sector workers will find themselves rapidly migrating to new private sector jobs.
There are plenty of reasons for thinking that the economic reasoning is flawed. And there is precious little evidence that it is happening. The public jobs are disappearing sure enough. But the promised private sector expansion is rather slower in arriving. That is not in itself great surprise, if you read the economy more plausibly.
But on Wednesday night the local news in my area offered a troubling additional angle on the issue. [Read more...]