THE FISCAL AND DISTRIBUTIONAL IMPLICATIONS OF JOB GENERATION

This article estimates the cost of a public investment-led job creatio n programme for the United Kingdom. A programme creating an additional one million jobs at the current average wage would involve a net cost to the Treasury dramatically lower than the gross cost; pound 17 bill ion worth of spending would result in a net cost of around pound 7 bil lion. Given that even a partial restoration of progressive taxation wo uld bring in more than half this net amount, improved living standards could be brought about relatively easily, provided dogmatic objection s to public sector initiatives can be overcome.