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2024-06-17 18:07:25
ukpol economics child-benefit cap
Apparently Labour are saying they need to get some economic growth in order to fund removing the child-benefit cap?
If they are saying that and meaning it and not just trying to manipulate voters, they do not understand economics in the tiniest little bit.
There are thousands of kids living in basically poverty conditions. They are not contributing to the economy, they have no money.
If they were to have some money, they would spend that money on good and services.
Those sales would be taxed! The wages of the extra staff employed to meet the increased demand would be taxed! The savings of the rich people who end up with that money in their off-shore accounts can be taxed!
Ending that benefit cap is how you get the growth! You give the poor money, they spend it, investment comes to meet the demand.
What is the actual plan otherwise? Let everyone stay poor so that there's no economic demand an so no private investment?
The idea that you can cut your way to growth is utterly deranged, the kind of backwards economic thinking you expect from a Conservative.
I do hope they're just lying to get elected again rather than actually believe the lunacy they say on the TV.
#ukpol #economics #childBenefit #Labour