Are Benefit Scroungers to blame for the state of the UK economy? Watch

illegaltobepoor
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Well last episode of Benefits Street has been on air and now its time to decide. Are Benefit Scroungers to blame for the state of the UK economy?

Ideally if there is to be any money to invest in business; the banks need to offer high interest rates to attract savers. Mark Carney the Bank of England chairman refused to put up interest rates recently since unemployment statistics haven't fell below 7%. We still have 2.5 million unemployed and 500,000 job vacancies. If all of the work shy took those jobs we could get unemployment all the way down to 5.6% and then maybe the Bank of England would put up interest rates to get the economy back on track.

Heckling the workshy must now be our national sport. We are involving them in our daily lives for someone to blame for all the ills in society. I mean why not? Its better if its them and not us right?

We only need to look back to the 1991 recession when things where this bad. There was 10% unemployment and the benefit scroungers where lining up in droves at the Job centres. There must of been a unemployed person on every street.

But why did the legacy of Margret Thatcher go sour? John Major was carrying everything Mrs Thatcher taught him yet during 1990 to 1993 unemployment was going up?

The truth is neither the recession in 1991 or 2008 was the Governments fault or Benefit Scroungers fault. It was a byproduct of central bank policy and big banks. Just like the credit crisis & sub-prime mortgages caused mayhem so did the creation of financial bubbles.

The whole Benefit Scrounger focus is a move by our Government to focus the blame away from the financial markets. This is important for the higher classes because London is one of the best places in the world for the super rich and certain people don't want change for those who live life in ivory towers. The big spenders need access to huge amounts of money to be able to turn 500 million into 2 billion. It works like that.

Let me be clear. A recession is a natural process in Capitalism. It fixes the problems which where made during a economic boom.

The best example is the FTSE100 stock. It is brought and sold and has a trend going up and down. When the bulk of companies are viewed as a good investment people buy into that stock. However when trouble brews and it becomes less profitable people start withdrawing their funds and the stock looses value.

But when you have a stock which quickly looses vast amounts of its value; Lets say 5% in a matter of minutes a lot of other people trading that stock will lose incredible amounts of money. This is because people borrow money when trading. It is called leverage.

And what happened on both occasions in 1991 and 2008 was huge leverage, huge financial bubble and one big stock market/bank crash.

These problems always occur in a economic boom. People get to greedy and they don't care if they screw someone over or screw the entire financial market over. And when you get a crash the equilibrium is restored.

So remember this guys. When you blame a Benefit Scrounger for the recession there is a bigger Benefit Scrounger in a bank. I guarantee you.
And you know what the worse thing is? High street banks like RBS & LOYLDS use your money.
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Bill_Gates
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Corrupt governments, tax avoiding corporations, loss of manufacturing to emerging economies, poor economic planning, over reliance on banking and speculation
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illegaltobepoor
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(Original post by Bill_Gates)
Corrupt governments, tax avoiding corporations, loss of manufacturing to emerging economies, poor economic planning, over reliance on banking and speculation
I agree. A lot of people think privatization is the key. Well yes until that corporation takes their business to a nation where they can hire cheaper workers. This is why nationalization within Capitalism will always be a alternative. I don't care how much right wingers whine about how nationalization always fails. Most the time it fails because politicians always treat nationalized companies as safe havens for lazy, greedy and stupid CEOS.

Yes that is right. Private corporations lobbying Government to put some stupid CEO in a successful nationalized industry and then cause problems on purpose to the point where there is no other alternative than liquidation. Remploy would be a great example. Ask yourself this question. Why wasn't there any modernization in terms of what Remploy produced?
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AmusedDouche
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i simply don't know
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Over2you
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(Original post by Bill_Gates)
Corrupt governments, tax avoiding corporations, loss of manufacturing to emerging economies, poor economic planning, over reliance on banking and speculation
This. The affect of people claiming benefits is minimal compared to what this guy has listed. Also people with benefits spend the money straight away, so in essence pumping the money back into circulation. To add to that list, I'd also say rent-seeking and the very fact that not only the UK economy, but the global economy is dominated by the 1%. The 1% tend to save their money in off-shore accounts or place investments in stocks, bonds etc. As a proportion of their wealth, they spend very little


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3458349058349053
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The causes of the financial crisis are complex though. A "scrounger" narrative is far more simple for the average voter to understand than how US collateralized debt obligations work.
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No Man
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I'd lay more blame on the City.
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Quady
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(Original post by illegaltobepoor)
Well last episode of Benefits Street has been on air and now its time to decide. Are Benefit Scroungers to blame for the state of the UK economy?

Ideally if there is to be any money to invest in business; the banks need to offer high interest rates to attract savers. Mark Carney the Bank of England chairman refused to put up interest rates recently since unemployment statistics haven't fell below 7%. We still have 2.5 million unemployed and 500,000 job vacancies. If all of the work shy took those jobs we could get unemployment all the way down to 5.6% and then maybe the Bank of England would put up interest rates to get the economy back on track.

Heckling the workshy must now be our national sport. We are involving them in our daily lives for someone to blame for all the ills in society. I mean why not? Its better if its them and not us right?

We only need to look back to the 1991 recession when things where this bad. There was 10% unemployment and the benefit scroungers where lining up in droves at the Job centres. There must of been a unemployed person on every street.

But why did the legacy of Margret Thatcher go sour? John Major was carrying everything Mrs Thatcher taught him yet during 1990 to 1993 unemployment was going up?

The truth is neither the recession in 1991 or 2008 was the Governments fault or Benefit Scroungers fault. It was a byproduct of central bank policy and big banks. Just like the credit crisis & sub-prime mortgages caused mayhem so did the creation of financial bubbles.

The whole Benefit Scrounger focus is a move by our Government to focus the blame away from the financial markets. This is important for the higher classes because London is one of the best places in the world for the super rich and certain people don't want change for those who live life in ivory towers. The big spenders need access to huge amounts of money to be able to turn 500 million into 2 billion. It works like that.

Let me be clear. A recession is a natural process in Capitalism. It fixes the problems which where made during a economic boom.

The best example is the FTSE100 stock. It is brought and sold and has a trend going up and down. When the bulk of companies are viewed as a good investment people buy into that stock. However when trouble brews and it becomes less profitable people start withdrawing their funds and the stock looses value.

But when you have a stock which quickly looses vast amounts of its value; Lets say 5% in a matter of minutes a lot of other people trading that stock will lose incredible amounts of money. This is because people borrow money when trading. It is called leverage.

And what happened on both occasions in 1991 and 2008 was huge leverage, huge financial bubble and one big stock market/bank crash.

These problems always occur in a economic boom. People get to greedy and they don't care if they screw someone over or screw the entire financial market over. And when you get a crash the equilibrium is restored.

So remember this guys. When you blame a Benefit Scrounger for the recession there is a bigger Benefit Scrounger in a bank. I guarantee you.
And you know what the worse thing is? High street banks like RBS & LOYLDS use your money.
Its the disabled that are the scroungers.

Edit
And are to blame for ruining the UK economy. Idle b*tards
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silverbolt
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in a simple word

no

though seeing as this is TSR im surpised that the thread title isnt "are benefits claiments to blame"
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nixy49
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(Original post by No Man)
I'd lay more blame on the City.
Yes & no. I used to think it was the lack of regulation ie 'government'. Now I realise the fundamental problem is Fraction Reserve Banking....Google it.

It FRB had been made illegal years ago, welfare to this level could not have occurred.

In short, the banks create money FROM THIN AIR and dish it out to buy votes.... they appear to 'do good' short term..... but saddle future generations with massive debt & inflation.

The road to hell is paved with good intentions......
where benefits = good intentions
&
future debt = hell
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Quady
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(Original post by nixy49)
Yes & no. I used to think it was the lack of regulation ie 'government'. Now I realise the fundamental problem is Fraction Reserve Banking....Google it.

It FRB had been made illegal years ago, welfare to this level could not have occurred.

In short, the banks create money FROM THIN AIR and dish it out to buy votes.... they appear to 'do good' short term..... but saddle future generations with massive debt & inflation.

The road to hell is paved with good intentions......
where benefits = good intentions
&
future debt = hell
How many years ago? 200?

What has FRB got to do with welfare? ;S
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Old_Simon
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Unfortunately the Govt uses people on benefits in the same way the Nazis used the Jews. They are lightning conductors and whipping boys to explain away the economic failings of the Govt and in particular its love of casino banking allied to a complete absence of any industrial strategy. The middle class are slowly waking up to the fact that many of these "idle good for nothing benefit scroungers dossing on the sofa watching daytime tv" increasingly include their own children and accordingly their attitudes are beginning to shift.
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TerribleTej
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Governments inability to manage its own money is also a reason, its fine if you borrow money to fund infrastructure projects or education which should give you a greater return in the future, but to borrow money for benefits, healthcare and just to pay the damn interest on the existing debt is longer term financial suicide for short term gains. The NHS has the capability (and even more) to treat all its patients on time its just that it is damn inefficient (something I actually didn't believe in until I saw the scale of the inefficiency with my own eyes), the point of benefits is that the person/people living on them should be as uncomfortable as possible so they get out of benefits and get a job, just look at benefits street, more than half the characters we see smoke or/and drink on a regular basis, something which the tax payers money just shouldn't pay for. This is the same for almost all the developed countries in this world, people relying too much on their governments to do something for them when they can't be bothered to do things themselves.

Furthermore my hatred of politicians from all around the world stems from the fact that they go after votes or their own good rather than the good for their country, we always see politicians doing things for the short term (i.e. raising/decreasing income taxes on certain groups of people just before elections) rather than the long term. I don't know who exactly is to blame for this but my opinion is that the inability of the general public to see the benefits(edit: or consequences of certain decisions) in the future is probably one of them.

Before I get criticised for this I would like to tell everyone that my family probably belongs in the bottom quarter of household income levels, we believe in hard work rather than relying on the government to get things done for us and if everyone did the same then the problems we notice today would occur much less frequently than they do now.
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Jamerson
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According to Owen Jones, less than 1% of all welfare spending is claimed fraudulently, which is 60 times less than the amount of money lost through tax avoidance at the other end of the economic spectrum. Case closed.
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nixy49
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(Original post by Quady)
How many years ago? 200?

What has FRB got to do with welfare? ;S
From where does government get 'it's' so-called 'money'?
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nixy49
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(Original post by TerribleTej)
Governments inability to manage its own money is also a reason, its fine if you borrow money to fund infrastructure projects or education which should give you a greater return in the future, but to borrow money for benefits, healthcare and just to pay the damn interest on the existing debt is longer term financial suicide for short term gains. The NHS has the capability (and even more) to treat all its patients on time its just that it is damn inefficient (something I actually didn't believe in until I saw the scale of the inefficiency with my own eyes), the point of benefits is that the person/people living on them should be as uncomfortable as possible so they get out of benefits and get a job, just look at benefits street, more than half the characters we see smoke or/and drink on a regular basis, something which the tax payers money just shouldn't pay for. This is the same for almost all the developed countries in this world, people relying too much on their governments to do something for them when they can't be bothered to do things themselves.

Furthermore my hatred of politicians from all around the world stems from the fact that they go after votes or their own good rather than the good for their country, we always see politicians doing things for the short term (i.e. raising/decreasing income taxes on certain groups of people just before elections) rather than the long term. I don't know who exactly is to blame for this but my opinion is that the inability of the general public to see the benefits(edit: or consequences of certain decisions) in the future is probably one of them.

Before I get criticised for this I would like to tell everyone that my family probably belongs in the bottom quarter of household income levels, we believe in hard work rather than relying on the government to get things done for us and if everyone did the same then the problems we notice today would occur much less frequently than they do now.
Don't really need tax payers these days..... don't even need a printing press. Just need a computer keyboard...... oh yes, and a future generation...... preferable gullible.
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Are you Shaw?
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(Original post by Bill_Gates)
Corrupt governments, tax avoiding corporations, loss of manufacturing to emerging economies, poor economic planning, over reliance on banking and speculation

no,
no,
yes,
no (are you srs suggesting a planned economy)
no
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Quady
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(Original post by nixy49)
From where does government get 'it's' so-called 'money'?
80% from tax, 20% from gilt sales, largely bought by pension funds...
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nixy49
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(Original post by Quady)
80% from tax, 20% from gilt sales, largely bought by pension funds...
Fair enough. but how much of that tax is from the financial services sector and the other Too Big To Fail institutions?
What might happen when (if) QE ever ends?
Keynes?..... wrong or selectively quoted by Brown Balls Krugman etc.?
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Quady
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(Original post by nixy49)
Fair enough. but how much of that tax is from the financial services sector and the other Too Big To Fail institutions?
What might happen when (if) QE ever ends?
Keynes?..... wrong or selectively quoted by Brown Balls Krugman etc.?
Well QE in the UK has effectively ended (ie not being expanded).

Whats a 'too big to fail institution'? BT would be included in that - who don't have anything to do with FRB...
Financial services is around 10-15% isn't it?

(not sure what your Keynes reference is about? 'In the long term we're all dead'?)
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