Can someone explain the economics to me? 490,000 public sector workers are going and private companies reliant on government contracts will be cutting jobs so, inevitably, unemployment rates will rise as well. With a shrinking jobs market many of these people will be claiming benefits long-term instead of paying taxes and, of course, spending less. So where's the saving?

Wouldn't it have been more sensible to try to boost the economy before making such drastic cuts? Sounds like basic business sense to me.