What We Learned Last Week (04/08 – 10/08)

kamsandhu —  August 11, 2014 — 1 Comment

1) Britain’s slow recovery is historically unprecedented

We said before that this had been the slowest recovery for a hundred years, but it seems Osbourne is breaking records with this one, as it is in fact the slowest recovery in 314 years! (We are still using the word ‘recovery’ in a mocking way, bytheway). David Blanchflower, Independent Journalist, decided to dig a little deeper at the record of the coalition, and found that not only is this the slowest recovery in over three centuries but the Coalition did choke the recovery’s progress.

Image: the Telegraph

Image: the Telegraph

“First, all previous recessions’ lost output was restored in four years or less, in contrast with just over six years – in fact 76 months according to the National Institute of Economic and Social Research – for the current recession. Second, it is apparent that the steepness of the path of recovery in all previous recessions was approximately the same, that is to say, the slopes of all the upward lines pre-2008 is approximately the same. Third, the recovery under Labour between Q32009 and Q32010 also broadly followed that same path, as does the current recovery over the last year or so.

“Finally, what is unprecedented is the flatlining of the economy in the Great Recession under the Coalition, once the recovery was already underway, from around months 37 (February 2011) through month 59 (December 2012). In February 2011 GDP was 4.9 per cent below the starting level; it was 4.2 per cent below it in January 2012 and still 4.2 per cent below in December 2012. It had still only reached minus 3.1 per cent by May 2013, in month 64. The Coalition killed off recovery at birth.”

Read more about this story here.

2) Osbourne suggests welfare money should be redirected onto high-speed rail links for north

George Osbourne has suggested that welfare payments which provide no ‘real economic return’ should be redirected into creating high speed rail links and infrastructure for the north of country.

Osbourne suggested that welfare payments can indeed ‘trap people in poverty’ – this is true in some ways, but if we were to remove these welfare payments to build more trains, people would still be trapped in a state of poverty, whilst a train they cannot afford a ticket for is built outside their house.  We have a suggestion for what we could do with redirected welfare payments – start the Universal Basic income – an unconditional income of £7000 a year could be granted to every citizen if we removed the welfare system altogether. Stay tuned for our article explaining the UBI this week.

3) 300,000 people wait five weeks for benefit payments in UK

A report published on Thursday by the TUC revealed that the Universal Credit scheme hits 300,000 people a month with a five week wait as it assesses benefit payments. Previously, you had to wait two weeks for payment. image

The new waiting time could see people going into 2 months of rent arrears before receiving support. The report revealed that 39,000 newly unemployed people will be hit by the wait each month. The report also revealed that only 1 in seven people knew about the plans, with 70% saying they would be worried if they had to wait this long if they lost their job.

The TUC has now launched their new campaign, Save Our Safety Net, highlighting the holes in the welfare system, including the five week wait.

Read about this story here.

4) Iain Duncan Smith interview

Image: theweek.co.uk

Image: theweek.co.uk

IDS gave a interview to a BBC journalist which demonstrated that he is achieving exactly what he set out to.

“And what of those stories of people suffering hardship because of benefits being reduced or not paid. “These stories about people in difficulty didn’t start the day I walked through the door. But of course those stories are sad and I want to find out about them – the speed with which you pick those up is what you really test yourself on.

“The reality is that the change itself should help resolve that, if you don’t change it they’re still going to be screaming.”

“Speed” as demonstrated by the previous story, doesn’t seem to be the Minister’s strong point. 1 million people using a food bank should probably sound alarms for IDS, or perhaps the fact that the main reason given for needing a food bank is benefit delays, and yet an even longer wait has been installed in the new flagship welfare system Universal Credit. Although, yes, we should have known from the fact this MInister has remained in his place past the reshuffle, that he is wholly being rewarded for the work he has done. The work that is so good, that IDS wants to suppress the reports of failures and costs of implementation from the public. All at public expense of course.

Read the interview here.

by Kam Sandhu @KamBass

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One response to What We Learned Last Week (04/08 – 10/08)

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