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DT1 - Public sector money is just recycled money.
The only new wealth generated is by private firms from sales and contracts that have no bearing upon public sector contracts/subsidy.
Right now the public sector accounts for 52% of the economy.
That means that 48% of the economy is having to prop up the other 52%. This is the worng way around and is therefore unstable and unsustainable. Think of a pyramid upside down. And right now this is getting worse and will continue to get worse for years to come.
This must be turned around and get that economic pyramid with a broader 'private sector' base on the ground so it is sustainable. This does mean shrinking the public sector to a sustainable size. I personally believe that once the public sector exceeds 40% of the economy you are on a declning curve of inefficiency and unsustainablility. We need to reduce the dependance on the public sector from 52% to 40%.
Yes it will be painful but it must be done, there is no other option. The fault for the need to cut lays entirely with Brown and his crazy economic policy.
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