(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.