Uh_huh_him
Well-known member
- Sep 28, 2011
- 12,127
you seem to have built a view based on the premise that "the rich" keep all their money in a box and nothing happens with it. (i wonder how widespread this view is, alot of left assumptions seem to flow from similar misconceptions). you also seem to have formed the view that reducing a benefit is taking money from someone, rather than not giving them as much, and overlooked that this is an expense of government. this is a widespread view that leads to all sort of logical somersaults, but i suppose its two sides of the same coin.
lets look at the proposition "taking away from the poor" constricts growth. it might reduce some consumption, but growth is a result of all consumption, investment, production etc.
so look at the alternative "take away from the rich". thats going to be about the same for the day to day living, except amplified by the increased amount the rich can consume. if we assume they don't spend it all, the surplus is invested. even if just on deposit, it will go into the machinery of the economy, it doesn't sit idle. the loans that you or a business take out to consume high value goods or expand is funded from this and the economy grows.
if we go back to the "taking" from the poor, its really "not giving". if you reduce this amount, the government pays out less, so need to take less from the poor and rich a like as taxes. see that substantially increased tax free allowance from the Liberals (shamelessly nicked)? who benefits most, the poor/low income or the rich? granted its not so clever for the individual not getting so much, but the economy does keep moving this way. you can keep the economy moving by constantly taking from one group feeding it back to another for no productive output, but you can keep it moving better, grow more, if you let the economy move the money around itself productively.
I understand your point. The economy is far more complicated than the ideological leanings of one side or the other.
There is no singular correct policy, I just believe the current government's policy is ideologically motivated and flawed.
I am glad that Labour have selected someone who is likely to challenge this view directly, rather than fall in line with the perceived wisdom of the time.
I believe this was the mistake Labour made throughout the last term.
The fact remains this government have failed to achieve the economic targets they set themselves in 2010.
If they haven't achieved these by 2020, then the opposition should be in a very strong position.