Quote:
Originally Posted by Eric
And yet, there is an argument to be made that it is not benefits that are too high, but wages that are too low. Or, that too many of the well-paid industrial jobs have been exported ... or full time jobs with benefits have been turned into part time jobs. A common tactic of corporations. It doesn't make any economic sense. In a consumer economy, consumers have to consume ... sorry for being a tad tautological  ; and in order to consume, they need money. If you take away most of the well-paid jobs, you have to make credit easier. This is how we got the NINJA loans in the states ... the ones that were a leading cause of the last recession. Or you have to pay large for benefits.
The growing inequality of incomes is what is at the root of riots and protests all over the world. CNN and Hilary Clinton would love us to believe that Egypt rose in revolution because they wanted freedom ... vs, they had enough of seeing Mubarak and his cronies stashing away billions, while many of the ordinary people could hardly make ends meet. Governments like the one in the UK will continue to give out billions in benefits in order to keep the poor quiet. There's no more Colosseum ... but there are 60" flat screens ... and cheap booze. |
You mention well paid industrial jobs being exported, ya I can remember when we had a thriving car industry, ship building too, what happened, well we had the closed shop, where if the wrong person changed a light bulb the all shooting match were out on strike, so eventually companies got sick to the back teeth of the likes of Red Robbo, hold them to ransom and instead of investing in British industry they went elsewhere.