Welfare isn't paid out and then lost. It is one of the reasons we have near-full employment. It is guaranteed spending within the economy that props the economy up in bad times, and causes it to surge ahead in good times.There are many ways to describe all the problems with this, but four words spring immediately to mind: politically and economically ignorant.
Do I really need to explain why? Two starting points if you want to work it out for yourself:
- "near-full employment" is not the way to describe nearly 300,000 people being on a benefit;
- taking from the productive to give to the unproductive does not "prop up the economy in bad times (though it might and has made the bad much worse, and the times in which bad happens more common), and it does not "cause [the economy] to surge ahead" in the good.
TAGS: Economics, Nonsense, Welfare