Wednesday, June 23, 2010


VAT increased to 20%- thus reducing sales

Public sector wage and pension cuts- less spending power

Benefit cuts- again, less spending power

How do Messrs Cameron and Clegg suppose this will ease the deficit? These actions may in the short term leave some money spare to pay off the deficit. But long term, they will mean less jobs, less spending, less growth.

More unemployed, so the benefit cuts will be wiped out by more people claiming lower benefits.

History shows us that penalising the poor- no, let’s call it what it is- making poverty a crime- is not the answer and it does not work. It was tried with 17th and 18th century parish poor relief and 19th century workhouses. The early 20th century saw benefits, but only if you could prove you were poor and had to sell anything not absolutely essential to life before relief was given.

In other words, a workhouse in your own home! So what happened? People died or turned to crime. Perhaps that is why Ken Clarke is considering cutting £2bn from the legal aid bill. We all know who that effects. Not Ken.

David Cameron, accompanied by a distinctly uncomfortable looking Nick Clegg effectively said benefit cuts, both in amount and those entitled to them would encourage people into work.

So would removing anti-Trades Union legislation and allowing higher wages thus negotiated. As one would expect in the Thatcherite free market economy. The other nail in this particular coffin is the prevalence of a generation of young people who have never worked or known job security and are perfectly able to make a good living selling drugs. Does he believe this underclass will worry if their benefits are cut?


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