Saturday, February 4, 2012

declining revenues and increasing difficulties highlighted in an IFS can not be hidden by the government DIY

Write on poverty is free to comment, as I have done for several years now, and the jokes below the line is always in the same line. Stakeholders opportunities, including myself, warned against the serious social consequences of the left behind the poor while the rich get richer before the libertarians are in the thread and make fun of us. The real poverty, they say, it's empty bellies and waterproof footwear, the statistical measures that could, for example, registered an increase of the relative difficulty, because Madonna has migrated to the United Kingdom are not for them abject nonsense

The argument is sterile, because the shortest reflection reveals that the topic of relative and absolute poverty. Malnutrition is a serious matter, regardless of the social context, but - as Adam Smith, always recognized - having enough money to enter the community is also important. The beam only good news in another depressing dankly Institute for Fiscal Studies (IFS) report is that old argument comes to an end. So difficult are difficult times and it is not necessary to choose between measures of competition problems - you can choose any metric you like, and the poor get poorer still

Since the 1920s at least, and perhaps before that Great Britain has made a habit of living means that increase from year to year. Even during the Great Depression, most of those who continue to work, low prices often allowed to stretch the extra salaries. Not this time. The IFS provides an extraordinary fall of 7% of sales during the three years to 2013. At low tide, the general prosperity will be an increase in the number of children and adults exposed to a cold that will make the most basic things such as heating and eating more difficult.

Second, the universal credit, Iain Duncan Smith - hailed by the government and most media as the solution to every problem being - will not repair the damage. The 2 billion pounds, or anything intended to spend is probably not sufficient to offset the £ 18 billion annually in social security cuts that his ministry is imposing. The IFS will not be confirmed. Even if Duncan Smith can overcome problems of implementation reported with its comprehensive system of social security, government measures announced in advance to reduce the tax credits and ratchet up the indexation so that benefits increase more slowly than the cost of living overwhelm any property that you could do.

If the government meets all, this line is sometimes used by Nick Clegg - and accuse the IFS of "static models" that ignores the "dynamic" benefits the government's reforms. If you find that line, do not swallow. IFS numbers are actually "static", but the main thing is likely to qualify his analysis would be a great wave of people moving into or out of work. No law reform tends to produce this one, since the effects are almost always double-edged sword - now the reward for a very short working hours are increasing, but for working parents with child care cost cuts substantial loans guaranteed that work will pay less than before.


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