Spending cuts mean rising poverty and inequality, OECD study confirms‏

The dangers of the ConDem love affair with Sweden's and Canada's cuts in public spending in the 1990s is exposed today in the FT as its cites an OECD survey showing that huge rises in poverty and inequality resulted in these countries.

The Growing Unequal survey says that in Canada, since the mid 1990's, 'the rich have been getting richer leaving both middle and poorer income classes behind'. Poverty increased for all age groups, by around 2 to 3 percentage points to an overall rate of 12%. (see CUPE President Paul Moist's warning to UNISON Conference this year at http://unisonactive.blogspot.com/2010/06/solidarity-greetings-from-canada.html)

The Organisation for Economic Co-operation and Development report also shows income inequality in Sweden and Finland rising by 12% during the cuts with poverty levels among the highest in the OECD. This explodes Government claims that cuts would hit the rich harder than the poor.

"Budget cuts were not the only factor to boost inequality. Tax changes benefited the rich, wage inequality rose, and much of the pain came through a squeeze on benefits, which hit poorer groups harder", says the FT.

Sound familiar?