The Cuts won’t work they will just make Things Worse
So later today will tell us what the Coalition Governments planned cuts. are we have had the usual leaks that the Defence cuts will be around 8% which was confirmed yesterday. I suspect that this is the most positive of a very negative cuts agenda. That’s why its been leaked. It is expected that we will see unprecedented cuts. What we will see is a lot of Ideological cuts. Cuts to the Public Sector that will cost jobs. I predict that we will end up with unemployment to match the 1980s and cuts that would Make Baroness Thatcher blush. It is Impossible to cut your way out of the deficit. Pubic cuts have effects on the private sector because of the economic symbiosis particularly within the construction industry. Cancelling building plans for new schools etc effect the private sector. I believe that the private and public sectors as so intertwined that the cuts will not create any growth. The effects of the cuts will cause unemployment on a scale never seen before. We have already seen the death of the coal industry under the Conservative Government. Most of the manufacturing industry was decimated. What industry is left ?
Fraud or is it Error
David Cameron has raised the issue of Benefit Fraud and While I agree this is a valid Issue unless we tackle the issue that runs along side it of errors by benefit staff. There is as much error in the system as fraud. This seem to say a lot. The training of the staff needs to be looked at as does the management.
Typical Conservative answer is to privatize. One credit checking agency is said to be already in talks to collect a bounty on fraud cases they find. I am assuming that this would be funded out of what used to be classed out of the “Benefit Saving” which is the benefit that will be recovered. Now It has not been muted what this bounty will be will it be a fixed amount per case.
The Problem is that Tax fraud is currently sitting at £25 billion while Benefit Fraud is at £1.5 Billion however Benefit error is sitting at £1.5 Billion. So why pick on Benefit Fraud ? The simple answer is they are the better target for David Cameron. I am not justifying Benefit Fraud it is wrong full stop. However they are bigger targets out there. The Tax fraud has to be dealt with. Unfortuanaly for David Cameron this is a Middle to upper class crime where as the Benefit Fraud is seen as lower class. We therefore have the same old Tories
I will be writing a more in-depth post on Benefit Fraud and Local Government in the Next few days. I am waiting on information from a local authority.
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