The original question posed by the writer above shows one of the major problems that must be overcome before we will ever be able to fight our way out of this mess.  --  "Can austerity really generate economic growth and create jobs?"
The media, sadly here even the financial media, cling to the notion that government programs create jobs.  This is not how it works.  This writer needs to be sent to write about shoe sales at the mall and replaced by someone who has some experience and understanding.  This type of casual, lazy reporting does the reading (and voting) public no good at all.

Correction: "Corporations avoid paying tax" with offshore subsidiaries in the CAYMAN ISLANDS. So the government has less and less tax receipts....with mo re people on welfare. One third of households in North London get some form of government support. Plus 100 Pounds in cash every month for each child. Time to print more money at the Bank of England fully owned by unnamed banks not the government.

The valid point about the effect of wages compression and the negative impact of productivity in terms of aiding corporations to make obscene profits with management filling their pockets was noteworthy. Apple with 10 billion dollars resting offshore. Ford CEO paid himself 20 million dollars last year after closing 14 US based auto plants. Plus selling Volvo plus Land-Rover Jaguar to China and India respectively. Google avoids all EU taxes domiciled in Ireland. Thats another problem as corporations dont avoid paying tax. Why is LLOYD BLANKFEIN still running the US economy as his private country club; doing GODS WORK? The age of oligarchs?