Why isn't the government doing all it can to cut the deficit?

There's a whole class of policies which could cut the deficit in the medium to long term, which the government is ignoring. It's a sign of how weak public debate has become.

"Save Money, Improve Student Learning, and Boost The Economy By Paying Teachers to Quit Their Jobs", writes Slate's Matt Yglesias.

The rationale is simple. Teaching, particularly American teaching, is a profession where pay scales very strongly with experience. Thanks to strong unions and a relatively flat hierarchy, it's common for teachers to receive annual pay increases. As such, a teacher with 25 years experience will end up having a salary significantly higher than a teacher with five years experience.

That's fine if talent also scales with experience; but if it doesn't, it may be the case that it's cheaper to pay veteran teachers off, and hire younger ones. Yglesias writes:

Yet when Maria Fitzpatrick and Michael Lovenheim looked at an early retirement incentive program that Illinois implemented in the mid-1990s they did not find evidence of this adverse impact: "We find the program did not reduce test scores" they write "likely, it increased them, with positive effects most pronounced in lower-SES schools."

That finding probably isn't applicable to the British education system for a number of reasons: our pay agreements are different, our school structures are different, and frankly, the fact that American test results are the determining factor of success in the study does not inspire confidence. But Yglesias' suggestion of how that finding be used is generalisable. He argues:

The federal government could borrow a bunch of money at today's low interest rates and make it available to states and cities that want to pursue cost-saving early retirement incentive programs. The cash up front aspect of the ERI program would goose the economy in all the usual ways. But the long-term savings to state and city governments would improve the long-term fiscal outlook and thus boost "confidence" (or whatever). Kids would be no worse off in school. Districts would have to hire a bunch of new teachers, opening up some job opportunities for young people. And it's all voluntary—veteran teachers who'd rather stay on the job and get paid what they're owed can do so.

There's a gaping disconnect between the number of interventions which we know pretty well can save money in the long term, and the number we actually enact. Whether or not this particular one would work remains to be seen, but in general there are, at any one time, a huge number of things the state could do to lower its spending in the long term.

In the British context, a lot of them fall under the banner of "reversing the cuts"; the false economy by which funding for crucial services like legal aid or preventative healthcare was cut means that, while spending in the first years will be lower, in the long term they won't do anything for the deficit at all. (Or, even worse, a hard limit on all spending might result in the deficit genuinely being reduced, but at the cost of vast reductions in human welfare).

Of course, rhetoric mocking the concept of "borrowing more to borrow less" renders this entire category of valuable policies unsupportable, either by the Government, which would be accused of hypocrisy, or by the Opposition, which appears to have been stung too frequently by the barb to risk giving more ammo. So we're not likely to see deficit funded payoffs of veteran teachers any time soon, and so the government will continue to struggle to keep its borrowing low in the long term.

A teacher, teaching. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Our union backed Brexit, but that doesn't mean scrapping freedom of movement

We can only improve the lives of our members, like those planning stike action at McDonalds, through solidarity.

The campaign to defend and extend free movement – highlighted by the launch of the Labour Campaign for Free Movement this month – is being seen in some circles as a back door strategy to re-run the EU referendum. If that was truly the case, then I don't think Unions like mine (the BFAWU) would be involved, especially as we campaigned to leave the EU ourselves.

In stark contrast to the rhetoric used by many sections of the Leave campaign, our argument wasn’t driven by fear and paranoia about migrant workers. A good number of the BFAWU’s membership is made up of workers not just from the EU, but from all corners of the world. They make a positive contribution to the industry that we represent. These people make a far larger and important contribution to our society and our communities than the wealthy Brexiteers, who sought to do nothing other than de-humanise them, cheered along by a rabid, right-wing press. 

Those who are calling for end to freedom of movement fail to realise that it’s people, rather than land and borders that makes the world we live in. Division works only in the interest of those that want to hold power, control, influence and wealth. Unfortunately, despite a rich history in terms of where division leads us, a good chunk of the UK population still falls for it. We believe that those who live and work here or in other countries should have their skills recognised and enjoy the same rights as those born in that country, including the democratic right to vote. 

Workers born outside of the UK contribute more than £328 million to the UK economy every day. Our NHS depends on their labour in order to keep it running; the leisure and hospitality industries depend on them in order to function; the food industry (including farming to a degree) is often propped up by their work.

The real architects of our misery and hardship reside in Westminster. It is they who introduced legislation designed to allow bosses to act with impunity and pay poverty wages. The only way we can really improve our lives is not as some would have you believe, by blaming other poor workers from other countries, it is through standing together in solidarity. By organising and combining that we become stronger as our fabulous members are showing through their decision to ballot for strike action in McDonalds.

Our members in McDonalds are both born in the UK and outside the UK, and where the bosses have separated groups of workers by pitting certain nationalities against each other, the workers organised have stood together and fought to win change for all, even organising themed social events to welcome each other in the face of the bosses ‘attempts to create divisions in the workplace.

Our union has held the long term view that we should have a planned economy with an ability to own and control the means of production. Our members saw the EU as a gravy train, working in the interests of wealthy elites and industrial scale tax avoidance. They felt that leaving the EU would give the UK the best opportunity to renationalise our key industries and begin a programme of manufacturing on a scale that would allow us to be self-sufficient and independent while enjoying solid trading relationships with other countries. Obviously, a key component in terms of facilitating this is continued freedom of movement.

Many of our members come from communities that voted to leave the EU. They are a reflection of real life that the movers and shakers in both the Leave and Remain campaigns took for granted. We weren’t surprised by the outcome of the EU referendum; after decades of politicians heaping blame on the EU for everything from the shape of fruit to personal hardship, what else could we possibly expect? However, we cannot allow migrant labour to remain as a political football to give succour to the prejudices of the uninformed. Given the same rights and freedoms as UK citizens, foreign workers have the ability to ensure that the UK actually makes a success of Brexit, one that benefits the many, rather than the few.

Ian Hodon is President of the Bakers and Allied Food Workers Union and founding signatory of the Labour Campaign for Free Movement.