Economic Surprises?
George (who from now on will be called Gideon...look it up) Osborne is apparently surprised that the economy has stalled. He is surprised that there are thousands more unemployed than before. Why?
There is a problem that public services are being cut and therefore people are losing their jobs. These people are all becoming redundant and this is contributing to unemployment figures. Then there are the private sector jobs that have all been lost, these people also cotribute to the unemployment figures. The public sector workers were supposed to take all the private sector surplus jobs, but there are not even jobs for the people even in the private sector. Then there is the case that there are people like my boyfriend who graduated a couple of years ago, but have so far only been able to get part time work, so they are not earning full time.
Gideon's other big plan was to raise VAT. This I still do not understand. If you want to ensure growth in the economy then you need to get people spending. The way to do that is to cut prices, and lowering VAT is a brilliant way to encourage spending, especially with electricity and gas bills on the rise. Raising VAT to 20% is just putting people off spending. I have already worked out how much I can spend on people this year for Christmas and it is not really a lot, compared to last year anyway.
All this has come as a massive surprise to Gideon. This doesn't surprise me as he has shown, even before his party b******d the Lib Dems and clawed their way into power, that he didn't and doesn't understand economics. That and he doesn't really care. That strikes me as the main point, Gideon and chums just don't really care.
There is a problem that public services are being cut and therefore people are losing their jobs. These people are all becoming redundant and this is contributing to unemployment figures. Then there are the private sector jobs that have all been lost, these people also cotribute to the unemployment figures. The public sector workers were supposed to take all the private sector surplus jobs, but there are not even jobs for the people even in the private sector. Then there is the case that there are people like my boyfriend who graduated a couple of years ago, but have so far only been able to get part time work, so they are not earning full time.
Gideon's other big plan was to raise VAT. This I still do not understand. If you want to ensure growth in the economy then you need to get people spending. The way to do that is to cut prices, and lowering VAT is a brilliant way to encourage spending, especially with electricity and gas bills on the rise. Raising VAT to 20% is just putting people off spending. I have already worked out how much I can spend on people this year for Christmas and it is not really a lot, compared to last year anyway.
All this has come as a massive surprise to Gideon. This doesn't surprise me as he has shown, even before his party b******d the Lib Dems and clawed their way into power, that he didn't and doesn't understand economics. That and he doesn't really care. That strikes me as the main point, Gideon and chums just don't really care.
It's pretty simple really. Once the good old banks had been bailed out, the next job was to make them more money. People who are in credit, at least less than 1M of it, aren't actually all that valuable, so the only way to ensure that the banks made more money was to get more people in debt. Cutting public sector jobs plunged thousands of people into it. Then the VAT rise made sure everything was that little bit more expensive - a little more on the old credit card then!
ReplyDeleteThe reality is that when you view the economy as a single system it makes far more sense to the people at the top of that system if the workers do the most work for the least reward. More unemployed means more competition for each job and therefore lower wages - less expense. By keeping people in debt, debt interest is another chunk that comes straight back out and up to the top.
Don't you loony lefties see? We need the wealth divide to keep the money moving upwards!