Soldato
- Joined
- 4 Aug 2007
- Posts
- 22,395
- Location
- Wilds of suffolk
Do you really believe that their are enough jobs for everyone to work?![]()
No but of course its a knock on effect.
Take 100,000 people off the dole tomorrow and start them earning money and they start to pay for services, hence creating demand for more, which means a few more '000 people need to work to provide those services etc etc
Its the opposite to the waves of redundancies you saw a couple of years back, building was crippled so they laid off, then their supporting industries felt the pince so they laid off, then their suppliers, plus service industries etc etc.
Also the fewer people actually being paid benefits the less the demands vs those in work and paying to support those who aren't in work. If you suddenly had you tax bill cut by 50% what would you do? A fair few would start spending more which tadaa! increases demand and hence employment.
The quantative easing Labour were supporting was basically trying to do exactly this, but with public money. To reduce/stop the contraction and by spending get the demand to start going back up.
Whilst studying a **cough** few years ago I was reading about competative advantages of nations. Interestingly there was a point about Germany in the 80s and 90s, they had a very low dependancy culture since the war had devastated that generation, their average age and also dependancy ratio was much lower then the rest of Western Europe which was claimed gave them a competative advantage in lots of ways. I believe it was about now as in around Y2K - 2010 that situation was completely changed and they would be back to a much closer situation to the rest of Europe. Now I think about it, Germany doesn't seem the European powerhouse it once seemed.