So what's your suggestion to the current mess? Keep spending until we all go pop?
For christ's sake its nothing more than common sense....cuts are what is required and that's what happened.
A bit of a no-brainer really.
The good old 'no brainer' argument. Nobody is suggesting that spending has to increase but the savage cuts proposed risk sending the economy into double dip recession. Everybody bangs on about cutting the public sector but as other posters have alluded to, this will have a knock on effect on the private sector that provides services/supplies to the 'public sector'.
What will get us heading in the right direction sooner will of course be prudence with the public purse but more importantly by stimulating demand. Increase demand then the private sector can increase output and hopefully productivity. The argument that Canada achieved back in the 90s what the Tories are proposing is often quoted however there are many economists that argue that the measures taken hindered their recovery which would have happened due to increased demand over the subsequent period from Canada's biggest customer, the USA. ie Demand increased.
There are going to be cuts in eduction yet how often do we hear private companies complaining about the quality of those entering the job market.
There will be cuts in defence yet we are fighting a war.
We have already seen the coalition withdraw a loan facility for a british company which would have enabled them to compete in the supplying equipment for building nuclear reactors. That's a loan facility, ie it will be paid back with interest. Our nuclear programme will now be put back so we are even further at the mercy of fossil fuel suppliers.
So Mr 'No Brainer' exactly how is the private sector going to expand if there is no increased demand for their products/services.