The Government are totally right on one thing, earning boosts the economy, on this basic fact there can be no dispute. Getting folk off benefits, including tax credits, and self sufficient in employment has to be the way to go but, he has it wrong, terribly wrong, damaging to the country wrong on the level of income people need to really make this a healthy top to bottom country.
The notion they have of making the rich richer and expecting it to filter down requires a mindset amongst the wealthy which simply doesn’t exist.
What is required is to make those at the bottom wealthier, not rich but they must have expendable income. Look, it’s obvious, anyone can understand it, except the government it seems, it’s economics.
If you pay Joe Public minimum wage, even a living wage and it just about covers his living needs so, his everyday costs such as utilities, rent/mortgage, TV and so on then he is no longer a burden on the country but then, he is also not a financial contributor either as he either pays nothing or very little in tax and a small amount of VAT.
Pay Joe Public more than he needs and he will spent it or save it. If he spends (most likely) then he will need product to buy. The more there are like our Joe the more product will be needed, the more workers will be needed to manufacture and sell that product. This creates employment. If those new employees also have more than they truly need to cover their costs then they too buy product which requires more workers to provide it, deliver it and sell it which requires more workers … with all this selling, companies make larger profits even on top of those extra wages, larger wages means more tax revenue.
The result is … huge extra tax revenue for the country, unemployment right down, benefit costs slashed, huge increased profits for companies and shareholders … everyone wins from this.
There is only one reason it doesn’t happen and that word is ‘greed’