State Funded Majority

11 04 2010

Category; Politics, Finance

© The Guardian

The OECD reports that more than 53% of GDP is now in the Public Sector, not so long ago it was 40%.

There are 6 million people employed in the public sector. I’ve recently mentioned Milovan Djilas writings about the New Class in former Yugoslavia, governing in its own interests rather than those of the state.

When the public sector reaches a certain point it has a distorting effect politically…

You have the people who work for the government, the people who work for state entities, non-government organisations funded by the government (national and local), regional development agencies and the organisations they fund.

But then you have the organisations receiving grants from publicly-funded organisations and companies that rely on state-funded organisations for their income.

All the people who work for those organisations have a vested interest in the continuance of a free-spending public sector.

And beyond that, everyone else in their household.

And everyone with a significant proportion of their income from social security, and people in council housing or housing association accommodation.

That’s beginning to sound like a lot of people and they all have  the same vested interest. For them to vote for a smaller public sector would be turkeys voting for Christmas. Welcome to the State-Funded Majority Class which owes its prosperity to the wallet of the state.

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