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A system in meltdown: the crushing of the middle classes from both sides

Warning: this is an emotive subject. We all know people who would be (and are being) negatively effected by some of the changes that are being made by government and would be under some of my opinions. My opinions aren’t for everyone but I would ask if you are going to take the time to read this that you take an emotional step back and look at it from an overall perspective on where the system is wrong not on how it would effect our loved ones.

It can’t be just me who believes there are no serious political parties out there who represent the views of the normal, hard-working citizens of the UK? I’m not talking left or right-wing, I’m talking about Common Sense politics and decisions to make society fair. Or as fair as realistically possible.

There has been a lot of negative press in recent months about Government cuts and often rightly so but just as people bemoan the cuts to services, many, often the same people complain about that the welfare state is unbalanced.

Only the most naive believe we can just carry on as we have and things will only get better. It is true that government budgets and indeed the global economy can be cyclical; there will be natural dips and waves, but that does not mean things can be left to free-fall and will eventually fix themselves. Things change and improve for a variety of reasons but not without action.

Everybody knows about the deficit. Everybody knows it is unsustainable. There are literally only two ways of doing this: decrease costs or increase income!

Like most things in politics and government the correct answer is to do a bit of both, make enough small changes to reverse the trend, create a positive tipping point where less is spent on welfare, encourage job creation which in turn would mean less people are reliant of the state lowering costs while eventually increasing income by increasing productivity. Unfortunately neither of the two (can you really call it three?) UK-wide parties seem to be going for this solution.

That being said just think about what we already pay: Relatively high rates of income tax, National Insurance (combined taking at least a 3rd of our salary (the companies we work for contribute to that national insurance as well), ridiculous fuel charges (of which well over half go to the government), 20% VAT on most products we buy, fuel duty on transport, the most expensive public transport system in Europe, sky-high energy bills, road tax for awful roads, tax for bloody pasties… list goes on. The point is there is only so many times you can go to the well.

I dislike the Tories, as most Scots do, but find it frustrating that the blind loyalty to Labour felt by many north of the border prevents them seeing that today’s problems are largely caused by successive Labour Governments. They may not have caused the global recession but their governance did not help and left the UK wide open to feel the effects.

A generation of Labour in power saw public spending outstripping income, with so much lack of foresight and an arrogance in a boom period that they believed would go on forever (or simply thought someone else would clean up the mess).  So when the global recession hit the shores of the UK an the housing bubble burst the bricks well and truly came tumbling down. A responsible and sensible government who promoted hard-working families, self-improvement and an entrepreneurial  spirit would not have allowed the global economy to hit the UK so hard and so drastically but that is now in the past.

The tax breaks for the rich are on the surface a farce, and I cannot fathom why the Tories thought now was a good time to introduce them. However, I am not in the camp of ‘the rich should be taxed as much as possible’ for two reasons. Firstly, why should they be? Many of the wealthy have worked hard for their money, why should they give it away? Yes they can afford it but the beauty of percentages is that they stay the same whereas the values gained by the state go up or down depending on earnings. Secondly, if you tax the rich too much they will simply use their wealth, power, influence and/or resources to pay even less or no tax at all. Tax them fairly and ensure there are no loopholes so they pay tax and have no means of avoiding it. The same goes for large corporations, we should be encouraging them to create jobs and open branches and headquarters in the UK (or Scotland down the line) not making them run to more inviting shores, but make sure they pay what is due. But that along with the positive steps government should be taking is another ‘moan’ for another time.

The spending by governments has spiralled out of control. It is now limiting options for government and in turn limiting our chances of generating economic growth. We, as a country are fire-fighting and to be perfectly honest I can’t see a way out without an awful lot of hurt. Personally I think independence would be the ideal opportunity to break free of the cycle but that is again, another ‘moan’ for another day.

Ironically Labour now sit back quietly while the Tories make unpopular decisions and will no doubt inherit a system far more streamlined and balanced than the one Labour left David Cameron. Secretly I believe Labour are quite happy for many of these changes to be made, not only because they are still a fractured force without real leadership but because they know these changes are necessary. While Cameron becomes public enemy number one Labour will re-group and step in to be the knight in shining armour when the next election comes around. Of course by then most of the work will already be done and a generation of voters will associate the Conservatives with pain and suffering.

Cameron and his lackeys are making changes, at least that is something. However they do seem to be making quite a few changes without thinking it through or in the wrong places. Tax breaks for the rich at this time is a decision that will prove to be as unpopular

Public spending is so high and the welfare state so out of control that people’s perspectives have been altered on just what it means. When National Insurance was introduced and the welfare state created it was designed as a safety net against illness and temporary unemployment. The benefit system was created with the intention it would provide a means to survive for those in hard times. At some point along the line it became a lifestyle choice and a way of life, sadly a way of life that is now being passed from generation to generation.

The welfare state is a great concept and is an essential part of the fabric of our society but it is broken. So badly broken for so long that people have lost sight of its purpose.

I have been asked by a young person whose family has been reliant of benefits their whole life why I worked. At first the question seemed absurd and frankly quite funny. Years later I’m starting to think the young person had a point, from their perspective they could grow up to live a comfortable life and never work while I would be at work to provide myself with a comfortable lifestyle.

What makes all this more galling is that it’s the ones who play the system who get the real benefit from it, those who actually need and deserve it often find barriers in their way an end up being lucky to receive the bare minimum. Those who end up on unemployment after working for years are the ones who end up on £53 a week, trying to scrape by in between jobs. People who have been responsible and have saved for such an event get nothing while those who spend irresponsibly, often money they can afford are given free passage. Couples are punished time and time again for simply being together. There are those on benefits with savings accounts in the tens of thousands while hard-working individuals struggle to make ends meet and pay excessively taxes fuel bills which help pay for the welfare state. Working parents, both single and as couples struggle to pay childcare costs while those who do not work enjoy bringing up their child relatively worry free. I know of couples where both partners are in good jobs but are worried about being able to provide for their 2nd child while there are some who have not worked a day who gain more by having a bigger brood.

This is not a criticism of the individual or an attack on the ‘benefit scrounger’. For many it really doesn’t make sense to work even if there are jobs available. For many, unless they are moved into a high paying position then they would be worse off, they’d be stupid to just go out and take any job.  When it comes to it the system is at fault for creating this reality. The system is wrong, it is messed up, it is back to front and inside-out.

Somebody needs to power-cycle the computer.

There needs to be change and real change. There needs to be a fairer society where people are given help and encouragement not the stark reality of being abandoned just because they start earning. At the same time the benefits system should never be allowed to be or be seen to be a full-time option for those capable or working. It should be there to make life secure and no more*.

There can be massive savings made in government and across local authority without having drastic effects on people’s  livelihoods. Money is thrown away at so many levels in the public sector (another ‘moan’ for you lucky people), all it would take is a fairer approach where departments were not so concerned about gaining a budget for the following year and managers were more responsible, able and used a bit of common sense.

Common sense would go a long way in solving the situation that we find ourselves in, unfortunately common sense isn’t actually that common.

*For those who are able and aged to work.




This post first appeared on Malonesmoans | Just Another WordPress.com Site, please read the originial post: here

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A system in meltdown: the crushing of the middle classes from both sides

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