Britain: Austerity, cuts worsen crisis

May 28, 2011
Issue 

The response of the British Conservative-Liberal Democrat coalition government to the economic crisis, which has been to implement billions of pounds worth of public spending cuts, is intensifying the effects of the crisis on the British people.

Austerity measures are worsening mass unemployment. Chief British and European economist at forecasting company IHS Global Insight Howard Archer has predicted unemployment will reach 2.67 million people by the end of 2011.

Archer said 鈥渢he private sector will be unable to fully compensate for the increasing job losses in the public sector [as a result of] the fiscal squeeze that is now really kicking in鈥.

The BelfastTelegraph.co.uk said on May 23 that at the annual Communications Workers Union (CWU) conference 鈥渞epresenting over 200,000 postal workers, telecoms and finance workers鈥 a vote was reached unanimously calling 鈥渇or a general strike, which officials will now raise with the Trades Union Congress (TUC)鈥.

The CWU accused the government of 鈥渁ttacking workers through its public spending cuts鈥.

The CWU鈥檚 eastern regional secretary, Paul Moffat, said: 鈥淭he attacks are causing irreversible damage to public services. Many unions are moving towards co-ordinated action and we must be part of it.

鈥淭his crisis was not caused by us, or our families, but we are paying for it. We need to work together with other unions, and the TUC should co-ordinate a 24-hour strike.鈥

Independent.co.uk said on May 23 that speakers at the conference accused the government 鈥渙f hitting women the hardest by cutting pensions and childcare support鈥 and warned that 鈥渟ervices such as libraries, youth clubs and sports centres were facing cuts or even closure because of the austerity measures鈥.

The article said the CWU is working to 鈥渇orge closer links with anti-cuts campaign groups as well as with students who have been fighting higher tuition fees鈥.

Union member Paul Garroway from Oxford told the Telegraph.co.uk on May 23 that claims from government ministers that everyone was 鈥渋n this together鈥 were a 鈥渓ie鈥.

Garroway said: 鈥淭he bankers continue to get bonuses, the champagne still flows for the rich, but we are expected to foot the bill for a crisis we did not create.鈥

The UK鈥檚 Office for National Statistics reported on May 18 that the number of people claiming unemployment benefits rose by 12,400 in April to 1.47 million people.

Public Service Trade Union (UNISON) general secretary Dave Prentis said women in particular were suffering because of the 鈥渂ankers' recession鈥.

Prentis said: 鈥淎s public sector job losses gather pace, the number of women out of work will keep on rising. This is a huge backwards step for equality, and a direct hit on families who are already struggling to cope.鈥

At the same time as cuts affect working people, a May 19 Counterfire.org article said: 鈥淭he top 0.1 percent of the population 鈥 just 47,000 people 鈥 now earn an average of 538, 600 pounds a year. That鈥檚 more than 20 times average earnings鈥

鈥淭he top 1 percent of the country owns 25 percent of all the wealth. The bottom 50 percent, meanwhile, own 7 percent.鈥

Meadway said, 鈥淏ritish incomes are already as unequal as they were in 1940. Decades of slow, but perceptible, redistribution since the end of World War Two have been wiped out.

鈥淭hat trend is set to continue and worsen.鈥

Guardian.co.uk said on May 8 that, 鈥渨hile most of the country struggles through the fallout from recession and government cuts, the UK鈥檚 1000 richest people are now worth 396 billion pounds, according to the latest Sunday Times Rich List鈥.

As is the case with the wave of austerity measures across Europe and in the United States, it appears ordinary people in Britain must also pay dearly for the crisis caused by the rich.

And like elsewhere, British people are beginning to fight back.

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