Why claming benefits aids the economy as well as helping you

There’s a number of people in the media, in the Tory Party and probably sitting right next to you, so here’s a wee point and a lesson in economics for those saying ”how will benefits fund themselves” at the likes of Sturgeon, Corbyn or anyone supporting the welfare state.

This is simple. You have a ‘welfare budget’. You assign those benefits to people. So far so simple, but how do people on benefits help the economy? Well, we know people on benefits spend what they have to survive (try living on 70 quid a week, you can’t save) so the money flows in a circle from government-recipient of benefits-retail outlet (or wherever you need to spend your money)-back to government via VAT or other taxes. People on benefits will spend what they get. putting it directly back into the system, so they’re paying people’s wages, etc just like anyone else is, and seeing as many of the items people on benefits will buy will at the very least have VAT on it, they’re paying taxes. In short, they’re paying their way and are invested in society.

In a universal system it’s a finely tuned machine as it essentially ends up funding itself. Sadly the Tories and Labour don’t believe in a universal system, choosing instead to means test which means the most vulnerable are often not able to access what they’re due which means billions of pounds of benefits lie unclaimed each year with £4.6bn of Housing Benefit lying unclaimed in 2014-15. Creating bureaucracies (which is what the whole purpose of means testing is) scares people off.

So when a Tory, or something of that ilk say the benefits system is broken they’re right but it isn’t because people are scamming the system (government figures of fraud is miniscule) but it’s because the system is now designed to keep you from money that you’re owed as a citizen. Claim every single penny you’re due and be proud of it. It’s your right and unless you’re the sort of bastard that’ll hide it in offshore accounts then you’ll spend it down the shop, or to pay your bills and feed it back into the economy. It is the job of government to make sure the economy is in a healthy state, and it isn’t the fault of people on benefits that the economy is crashing. That’s down to their failure to deal with the deficit, and walking out of Brexit negotiations with ”no deal” would be the sort of peacetime disaster we are not going to be able to deal with but will be the end of the welfare state as the government will mine it for revenue. Remember though, things like pensions are a contract you and I have with the government. They mine that to pay for their failures of managing the economy they are breaking a contract.

The Welfare State is a machine. It works if it’s left to work. It isn’t a system that leaves people luxuriating in a Hogarthian stupor. It is a system that now barely keeps people existing to forcing people to kill themselves due to being sanctioned for what little money they have coming from the state. It should be better, but it isn’t because of successive governments failing to do what they should or/and attacking the system to destroy it.

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One thought on “Why claming benefits aids the economy as well as helping you

  1. Also the benefits system exists to take pressure off other areas,e.g. the cost of the NHS treating malnutrition & diabetes complications and the costs to the police budget and justice system if more folk simply decide a criminal career looks like a better life than any other options.

    Liked by 1 person

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