(7b) Another response to comments on my comment on fall in public borrowing
Sometimes when I read the Guardian I respond to certain articles (nowadays I post more on the Guardian-website than I write on this blog as here is no response and thus no intellectual challenge). And so I read this article that describes why people should not to be too happy with George Osborne's new budget proposals. The article mentions that the UK has one of the largest deficits in the developed world and thus this needs to change. Indeed, according to the finally reason, it seems there will be further £12bn reduction of the welfare budget and £13bn reduction of Whitehall departmental spending (i.e. on government spending) and thus I think this can only be achieved by freezing people's wages and probably via job cuts because simply by changing from expensive paper to computerisation will not be sufficient for these reductions. And thus, more people unemployed will result in more people who are not able to spend and when they do, they will need to use their savings or bo...