1.3million jobs to go, most from private sector

[Tony]

That's very true but obviously the PAYE of those public sector workers and the business that is supported by the public sector is all paid for by private sector tax.

 

Magic Beans Brown thought that he had planted a magic money tree that stretched up to the Giant's cash laden house in the clouds.

[L00b]

Many of the public sector jobs created by Labour were indeed necessary, but given that public sector jobs have to be funded and few of them actually create wealth, what did the last government do to encourage wealth-creating jobs to pay for those in the public sector?

That's very true but obviously the PAYE of those public sector workers and the business that is supported by the public sector is all paid for by private sector tax.

Therein lies the simple, logical and irrefutable fact, which for some unfathomable reason seems to have escaped the Gvt's grasp for so long.

 

Wealth has to be created first, meaning generating a profit, which can then be taxed - this "first" taxation on each "new" profit is what fills/tops up the Gvt's coffers, everything else after that by the Gvt is just recycling the same income in an ever-decreasing cycle (e.g., when paying public sector employees, paying their PAYE/NI/pension contribs is effectively a "second" taxation - money collected from the earlier "clean" taxation (from the private profit) going around and around...and ending up being nil if the topping up by "first" taxation dries up).

 

AFAIK, the only profitable Gvt unit (that is, grossing more than it consumes) is the UK Patent Office. Has been for many, many decades.

[Rupert_Baehr]

More people in work = more people paying PAYE/buying more.

 

1,300,000 fewer people paying tax is quite a big dip.

 

Indeed. Lets assume that those 1,300,000 people return 33% of what you pay them in PAYE and NIS.

 

Since the money you use to pay those 1,300,000 people is all raised through taxes then then the loss in tax revenue is only one third of the savings in payroll expenses.

 

You still have to pay the people something. - Companies can lay people off, but governments can't.

 

We do need services, but they don't come free. If there are no wealth-producers there is nobody to pay for the services.

[crookesey]

The residential construction industry, when in full swing, creates a huge amount of jobs, both directly and indirectly. The coalition government needs to kick start the housing market and create real jobs.

 

The private sector has taken the whole of the pain caused by the recession, whilst the public sector stuck it's head in the sand. I was recently talking to a police officer with 25 years service who's decided to take his pension benefits, I can't say that I blame him, a nice tax-free lump sum and half his salary indexed for life, but can the rest of us afford it?

 

A lot of the private sector jobs that are about to disappear are from quangos, that are really disguised public sector jobs. The soon to be abolished Financial Services Authority (that was responsible for the banking fiasco) forces brokers and direct sales insurance companies to explain in great detail to customers what motor, home and travel insurance is, this quango really needs to go.

 

A few months ago my mother asked me to drop off a cheque for her council tax at Howden House. At the side of the mail box was a female member of staff who's job appeared to be to instruct people how to post a letter, I think that she is on borrowed time.

 

We have has 13 years of lunacy, let's at least give this coalition government a chance.

[Mister M]

Margaret Thatcher axed a lot of the Industry in the north of england creating massive unemployment during the last recession.

 

The following labour government, for good or ill, created a lot of jobs in the public sector to take up some of the slack and give people employment.

 

Now those jobs in the public sector are going, where are the new jobs going to come from this time?

 

Financial services were supposed to be the future - replacing a lot of the jobs in manufacturing that went. Coupled with this was the belief that markets were infallible and left to themselves they would be self correcting. It's very sad that Labour bought the Thatcherite rhetoric hook line and sinker. But they did and they've paid the ultimate price.

 

As I've said on here before, it bought them credibility with the markets - who were never Labour's natural allies. And just as importantly, it gave them respectability in the eyes of the press - many of whom are instinctively hostile to Labour anyway.

 

The vast majority of the bloated public sector is made up of the bailout of the banks paid for by taxpayers (£905 billion I think)

[Tony]

A few months ago my mother asked me to drop off a cheque for her council tax at Howden House. At the side of the mail box was a female member of staff who's job appeared to be to instruct people how to post a letter, I think that she is on borrowed time.

There are usually 3 of them there along with additional security guards. None of them are able to use the adjacent phone to contact anyone in the building to tell them that you have arrived for an important meeting. No, for that you need to queue up at another desk with the pensioners enquiring about their benefits.

 

It's all got to change. It's all gonna change.

[Greybeard]

There are usually 3 of them there along with additional security guards. None of them are able to use the adjacent phone to contact anyone in the building to tell them that you have arrived for an important meeting. No, for that you need to queue up at another desk with the pensioners enquiring about their benefits.

 

It's all got to change. It's all gonna change.

 

Hopefully a lot of these 'important' meetings can be cancelled too so people are allowed to do the jobs they're paid to do rather than just talk about it ad infinitum

[espadrille]

All business has to look at what they can manage without.

If the business survives to keep employing staff even at a reduced rate then that is what running a business is all about.

There have been many firms up and down the country who , over the last 2 years have sent their staff home and not paid them for a few days in the hope that the contracts would come back in.

 

My husband has been in the building trade for nearly 35 years and had several days when he didn't earn any money as there was simply no work, but he is still working for the same firm although he has to travel to places like Weatherby, Hull etc to get the work available (everday that is), but he was so fortunate today to have been working up near Graves Park. Now that then really feels like a bonus!

[mossdog]

It is hard to see where new jobs that create wealth can come from.Labour failed miserably in the wealth creation department and spent all the money and more, creating non wealth producing jobs.We are not going to rival Asian countries in manufacturing like we once did with cheaper products that are in every home in Britain,neither does it seem we can compete with Germany who supply most high end products to us.We don't build ships, dig coal,fish,make TVs motorbikes ,cars etc etc to the extent we once did.We have become good at over educating people and shifting money around in the city and creating non jobs out of nowhere,but that is not going to get us back on our feet.As much as I would love to be optimistic of our future I cannot see light at the end of the tunnel.

This coalition government is the last chance saloon for us, and from the steps taken so far,I do have a slight sense of optimism.Sure there will be huge job losses,the job will not be done properly without them I am afraid.Britain does not owe anyone a living,you are on your own and there have been numerous far worse times to live in this country than at the present time.If you are receiving or about to receive any form of benefit from the welfare state,even if it may have to be reduced,count yourself very very lucky!

[espadrille]

I really do believe that one of the projects that is currently operating in South Yorkshire, Business Education South Yorkshire may be in with a great idea of boosting the economy in the future.

It involves young people in schools getting free advice from entrepreneurs who run businesses in South Yorkshire.

It is around motivating them supporting them and getting them to believe the skills they have can be utilised to start doing something for themselves and earning a living.

many young people dont believe they can achieve these things but if they get support from people who have started up a business already about the pitfalls and benefits of working for yourself.