Gloucestershire Trades Council recently outlined the ten myths that are endlessly trotted out by the Coalition government and its cheerleaders.
Myth 1: The Government's debt is the highest it has ever been.
The debt is not unprecedented. At 70 per cent of GDP (the total amount of goods and services produced in one year), it is still lower than GDP between 1926 and 1960. Government debt reached 250 per cent of GDP around the end of the Second World War, at a time when the NHS and welfare state were built.
The UK has to refinance its debt much less frequently than its counterparts in countries such as Greece, Ireland and Portugal, making it less vulnerable to market pressure and debt inflation.
Myth 2: The UK has a big public sector compared to other countries.
Public spending in the UK is lower as a proportion of the economy than in France, Italy, Austria and Belgium, as well as the Scandinavian countries.
Spending on health and education is low compared to other wealthy countries.
The UK spends less than Germany, France and most other west European nations on health as well as spending less on education per pupil than most comparable countries.
Myth 3: Privatisation makes services more effective.
The Government is seeking to privatise as many services as it can get away with. The attempted privatisation of Royal Mail will make the nation's postal service open to profit-seeking companies from all over the world.
As with past privatisations such as the sell-off of the railways, this will have a disastrous impact on services, end up costing the consumer more and lower the working conditions of staff involved.
Royal Mail is already producing a profit for the taxpayer and should be protected.
Myth 4: The Government shouldn't get into debt, just as your own household shouldn't.
Margaret Thatcher said in the 1970s that public spending should be treated like a household budget, cutting back when there are tough times ahead.
But the Government isn't a household. All governments borrow – and the recession would have been worse if the last government hadn't intervened.
After a recession, when households and businesses cut back on spending, only the Government can invest to create the demand to get the economy going again.
Myth 5: Public spending got out of control under the Labour Government.
The Labour Government gradually increased public spending in the early part of the decade, but from historically very low levels.
Where Labour did spend more in the years after 2000, it was necessary to repair the visible effects of long-term under-investment, for example in schools and hospitals.
Myth 6: The UK's debt crisis is one of the worst in the world.
Our debt is lower than many other countries including France, Germany, Canada and the USA. In fact, figures from the International Monetary Fund show that Britain's debt as a proportion of GDP is the lowest in the wealthy G7 group of countries.
Myth 7: Public sector workers get 'gold plated' pay and pensions.
The average basic pay for public sector workers is £17,652 dropping to £16,889 for women.
Rather than having 'gold plated pensions' when they retire, the vast majority of retired workers receive much less on retirement.
The average pension in local government is just £4,000 a year dropping to £2,600 for women.
Public sector pensions have already been changed to ensure they are sustainable and affordable. Governments should be support the workers who save for their retirement – not attacking them.
Myth 8: Cutting public spending will help us avoid economic disaster.
In fact, there is a danger that the opposite could be true – deep cuts now could damage the fragile economic recovery.
Workers who fear for their jobs will cut back on spending in local shops and businesses.
Thirty-eight pence in every pound of public spending goes to the private sector through buying supplies and services – this will also be hit by deep cuts in public spending.
And if unemployment rises, the Government's tax take falls and benefit bills rise.
Myth 9: There is no alternative to cuts.
There is an alternative. One based on fair taxation and investment in growth, not deep, rapid cuts.
The Robin Hood Tax
A tiny tax on big financial transactions between banks, known as the Robin Hood Tax, could raise £20 billion a year.
There is growing international support for the idea of a global Robin Hood Tax including France, Japan, Germany and Spain, and the International Monetary Fund (IMF) have said it could work.
Cracking down on tax avoidance
Tax avoidance by big companies and the super-rich is more than £40 billion a year. Recruiting an extra 20,000 staff to work on tax collection could bring in an extra £20 billion per year. Investing in growth – long-term, sustainable growth - is the best way to build a strong economy.
Investment in science, technology, skills and business
Investing in science, technology and skills and supporting businesses will lay the right foundations for a more sustainable return to growth and a greener economy, which will be less reliant on financial services than in the past.
Myth 10: Only Trade Unionists with vested interests oppose public spending cuts.
With projected job losses of 500,000 in the public sector, and a further 500,000 potential job losses for workers in the private sector supply chain (as well as users of the vital public services which will be cut: schools, hospitals and transport to name but a few), the message is clear – everyone will be adversely affected in some way.
