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Britain is buzzing right now about a recently released report about the impact the government’s spending cuts will have on the overall economy. The BBC documented today that spending cuts and a 20% increase in the VAT may cost the British isles approximately 1.6 million jobs across the public and private sector. The Chartered Institute of Personnel and Development conducted the analysis, and produced the somewhat gloomy conclusions.

Several MPs, however, raised doubts. Conservative MP, Michael Fallon, thought the report was worthless, and stated that the CIPD has been overwhelmingly wrong in earlier predictions. Given, Mr Fallon’s take on the job forecasts is much easier to swallow, however, in this case the CIPD may have the situation sized up correctly.

In any basic macroeconomic course, the connection concerning the size of the economy and government spending and taxation is explained. Increases in taxation or decreases in spending lower Gross domestic product, because the government is diminishing the quantity of money that can be spent. On the flip side, lessening taxation or growing spending stimulates the economy by putting additional money in to the system.

Understanding this concept, cutting spending while increasing spending will without a doubt reduce in size the British economy; companies and ministries alike will be forced to lay off workers. The only matter up for debate at this point is how significant the reduction in jobs will be.

The odds are if the debt problem is as major as the government claims, then the economy will have to make a significant readjustment. This readjustment will will cause many people to lose their jobs until they can find new jobs in a new industry that is more highly valued by the market.

The office furniture industry is going to need to adapt significantly. With so many people being let go, there will be a large excess of office furniture on the market. One fewer employee necessarily implies one lessoffice furniture desk and office furniture chair, and these items will most likely need to be resold for cheap.

Moreover, quite a few freshly unemployed workers may well turn to working from home to create new income for themselves. A surge in the demand for in home office furniture may be coming.

One thing we can be nearly sure of is that office is about to become significantly less expensive. Now is the time to buy.

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