Thursday 21 October 2010

Surely the Welfare Budget will RISE

For ill or good, the Labour government saw an expansion in private business dependent on public orders because they kept privatising public services. With budgets slashed at a quarter and some half a million public service jobs going, another half a million jobs could go. But what about the negative multiplier effect, as less spending causes less demand, and the private sector shrinks further and further?

It seems simple to me. If you put another million plus on the dole, benefit payments go up not down, and the budget for benefits will rise.

When Thatcher did this, in part protected by North Sea Oil, she put lots of people on to Invalidity Benefit and hid the unemployment, got them through their last working years idle, and also she paid the police more to fight the social unrest.

Something doesn't add up about this government, the Conservative slashing and the Liberal Democrat role of being its prop.

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