Re: Unemployment is rising
 

Alan ,rich people do not lend money ,banks and finance companies lend money .Yes questions should be asked as to why the sub prime market was allowed to get so uncontrollable but in the end it was the people borrowing the money who defaulted .You can't keep blaming "rich people" and "major businesses" for the worlds ills.Quite a lot of the problem was ordinary people wanting things like houses and cars that they never had any chance of affording

Re: Unemployment is rising
 

It is the lenders fault? Where is the individuals responsibility in your world? The borrower should make sure that s/he can repay what they borrow. It is sad that there are way too many people in society that think like you and simply try to pass the buck and are unwilling to take responsibility for their own actions.

The reality of the situation is this. Small businesses rely on a certain amount of credit to fund working capital requirements. This funding allows them to operate and hence employ people. This funding was withdrawn post credit crunch because people had borrowed what they could not afford, defaulted and therefore taken money away from the banks leaving the banks in a position to not to be able to lend to credit worthy people. This is in fact a major contributor to today's unemployment levels.

Re: Unemployment is rising
 

The reason they cannot afford it is becuase wages have not be rising fast enough because of a decline in union power (along with high unemployment) which the rich and major businesses have also done

---------- Post added at 14:33 ---------- Previous post was at 14:32 ----------

So you agree that the rich and major businesses are not doing what is in interest for most of us?

Re: Unemployment is rising
 

Unemployment is rising because the Coalition is quite rightly killing off many of the public sector non-jobs Gordon Brown and Nu-Liebour invented when it looked like the country had money to burn.

However, the rate at which unemployment is rising has reduced, and has reduced by more than expected. This is because more private sector employers are taking people on. As the economy recovers, more private sector jobs will be created. These jobs, unlike the public sector, actually create wealth. This is good for the economy.

The UK is well and truly sick and the medicine tastes horrible. But it is working.

Re: Unemployment is rising
 

Alan that is complete rubbish .All this lending and borrowing took place in the boom times when work was plentiful and wages where high ,so explain that .Quite simply people thought they could afford to borrow more than they could ,they used cheap credit deals like buy now pay later ,and when the reality of actually paying it back 12 months down the line set in they rapidly realised they couldn't afford it and so defaulted .It had nothing to do with unions or rich people or major businesses .

Re: Unemployment is rising
 

Where in my post did I say that? Please stick to what I actually said.

Re: Unemployment is rising
 

The figures could have been worse. but they put those that they've sent on work placements and courses down on the found work register.

then when they've finished the work placement or course they were on, they go back on the unemployed figures. which get changed by the fresh ones that have come off the unemployed figures to replace them.

so in actual fact the unemployed figures would be many thousands more if they still counted the unemployed as unemployed.

Re: Unemployment is rising
 

The government is cutting more than just "non-jobs" and does not realise the growth, not spending cuts will fix the economy. We have kept the same failed economic system and we need to reform it. The government also needs to invest into the economy to kick start the growth of the private sector as well

---------- Post added at 15:29 ---------- Previous post was at 15:27 ----------

Wages for most of us were not rising as fast as the rich were hence the rise in wealth inequality, so it had to do with the economic system and the way the rich and major businesses (banks) made risky loans and did risky deals

Re: Unemployment is rising
 

Growth is to be found in the private sector, not the public. Cutting back the public sector by in some cases forcing workers out and into private sector work is in the long term better for the economy. It's a structural change that is painful but necessary.

Governments should presume to 'invest' in the economy in only the most limited of circumstances. Wherever possible, this should be the responsibility of the private sector, which inevitably makes more efficient use of capital than any public sector institution.

Re: Unemployment is rising
 

We need to create more decent jobs, not moving people to diffrent jobs, the only thing that is long term better for the economy is if the system is radically reformed

The only people with a lot of capital is the rich and the government need to take it from them and invest it into the economy, mainly becuase the banks are not doing that

Re: Unemployment is rising
 

So what happens when all the rich people are poor because the government have taken it from them ?
what happens when the rich people up sticks and move to another country to stop the government taking their money off them

Re: Unemployment is rising
 

And in 10 years we'll all have our own tractor and a share in the collective farm. :rolleyes:

It doesn't work, Alan. Planned economies do not work. Governments are useless at efficient deployment of capital. For proof, see the USSR, circa 1917-1991.

Capitalism is not perfect but it's the best we have.

Re: Unemployment is rising
 

Like I have said on many times, if the rich try and leave, there will have nowere to go

---------- Post added at 16:15 ---------- Previous post was at 16:14 ----------

I am not calling for planned economy, but for the government to invest into the economy to kick start growth from the private sector

Re: Unemployment is rising
 

As the people who are sent on work placements etc are still on JSA adn are still expected to look for work, won't they still be in the unemployment figures as claiming benefit?

Re: Unemployment is rising
 

You are calling for the government to take capital out of the hands of those who would otherwise be able to decide for themselves how best to spend it, and to instead spend it on government-approved projects. That is the essence of a planned economy, Alan - business 'encouraged' to grow where a government thinks it should grow rather than where the normal principle of investment and return would otherwise encourage it to grow.

Governments are hopeless at spending our money. It costs a small fortune for them simply to collect and distribute it using a workforce that delivers measurably poorer productivity whilst continuing to demand longer holidays and gilt-edged pensions and taking the definition of 'off sick' to in some cases ridiculous extremes.