Normally, after recessions, the economy bounces back because investment recovers as it becomes cheaper to borrow money, to buy machinery, to build houses. There is a natural rhythm to what is called the "business cycle". But this time it is taking a lot longer
The continual propaganda campaigns against claimants has successfully created the impression that benefits were out of control and encouraging idleness. In the 1990-93 recession when some 58% of us thought that more should be spent on welfare against 28% today although 4.4 million jobs in Britain pay less than £7 an hour. According to the Joseph Rowntree Foundation, six million people live in households which are receiving benefits even though at least one family member is working, and they will all be hit by the benefits squeeze.
The package of tax rises and benefit cuts will cost the poorest 10 per cent of households in Britain £3.34 per week by 2015, while the richest 10 per cent will see their incomes decline by £8.05. State pension payments get 1%, rise instead by a minimum inflation-linked 2.5%.
Households with annual incomes of around £14,200 lose £5.10 a week, while those with incomes around £16,900 lose £4.58.
Households with an annual income of around £24,500 gain by around 45p per week, while those with incomes of £27,500 will be better off by £1.17.
The poorest 50 per cent of households will see their incomes squeezed by the Coalition’s decision to limit increases in working-age benefits to 1 per cent for three years starting in April, a rise that will be below the expected rate of inflation.
The Chancellor justified the cut, which will take nearly £4bn out of the pockets of welfare claimants over three years, on the grounds that he was taking an equivalent amount from the rich by capping tax-free pension pots, ending Swiss tax havens and altering changes to tax thresholds. 87% of earners are not paid the £41,000 that gets them into the 40% tax bracket. But this is hardly comparing like with like. Losing tax relief on the top quarter-million of a £1.5 million pension fund is hardly going to hit as hard as losing £5 out of a £71 Job Seekers Allowance.
Shadow Chancellor, Ed Balls, said "Labour supports the cap on benefits".
The Resolution Foundation points out the median full-time wage will be 7.4% lower than it was in 2008 level. The Foundation reckons that the wages of someone in the middle of the income distribution in 2017 will still be lower than in 2000.
Meanwhile in the US output per worker grew by its fastest rate since 2010 in the third quarter of this year, according to official data. The Labor Department said that productivity among non-farm workers rose by an annual rate of 2.9% in the third quarter of this year. The rise suggests companies are finding ways of getting employees to work harder, rather than hiring extra staff. Labour costs fell by 1.9%
http://www.bbc.co.uk/news/business-20613339
The continual propaganda campaigns against claimants has successfully created the impression that benefits were out of control and encouraging idleness. In the 1990-93 recession when some 58% of us thought that more should be spent on welfare against 28% today although 4.4 million jobs in Britain pay less than £7 an hour. According to the Joseph Rowntree Foundation, six million people live in households which are receiving benefits even though at least one family member is working, and they will all be hit by the benefits squeeze.
The package of tax rises and benefit cuts will cost the poorest 10 per cent of households in Britain £3.34 per week by 2015, while the richest 10 per cent will see their incomes decline by £8.05. State pension payments get 1%, rise instead by a minimum inflation-linked 2.5%.
Households with annual incomes of around £14,200 lose £5.10 a week, while those with incomes around £16,900 lose £4.58.
Households with an annual income of around £24,500 gain by around 45p per week, while those with incomes of £27,500 will be better off by £1.17.
The poorest 50 per cent of households will see their incomes squeezed by the Coalition’s decision to limit increases in working-age benefits to 1 per cent for three years starting in April, a rise that will be below the expected rate of inflation.
The Chancellor justified the cut, which will take nearly £4bn out of the pockets of welfare claimants over three years, on the grounds that he was taking an equivalent amount from the rich by capping tax-free pension pots, ending Swiss tax havens and altering changes to tax thresholds. 87% of earners are not paid the £41,000 that gets them into the 40% tax bracket. But this is hardly comparing like with like. Losing tax relief on the top quarter-million of a £1.5 million pension fund is hardly going to hit as hard as losing £5 out of a £71 Job Seekers Allowance.
Shadow Chancellor, Ed Balls, said "Labour supports the cap on benefits".
The Resolution Foundation points out the median full-time wage will be 7.4% lower than it was in 2008 level. The Foundation reckons that the wages of someone in the middle of the income distribution in 2017 will still be lower than in 2000.
Meanwhile in the US output per worker grew by its fastest rate since 2010 in the third quarter of this year, according to official data. The Labor Department said that productivity among non-farm workers rose by an annual rate of 2.9% in the third quarter of this year. The rise suggests companies are finding ways of getting employees to work harder, rather than hiring extra staff. Labour costs fell by 1.9%
http://www.bbc.co.uk/news/business-20613339
1 comment:
i am still wondering, why just people themselves cant see the Coldness of Capitalism..why cant people just understand and have any realistic views...
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