[Chrysalis]

I have given explanations and here they are again so you dont need to search.

The welfare state clearly will boost the economy as people are given the ability to spend when they otherwise would be out on the streets, someone on the streests with no money isnt buying anything from shops, not renting from a landlord and so on. Whilst a benefit claimant is doing those things, even if its not earnt money it is still been done. Taxation and welfare is enforced circulation of money which is crucial to an economy, if money stops circulating then the economy stops with it.

Same principles to other government spending, it is enforced circulation of money, it makes jobs that would otherwise probably not exist and supplies work to the private sector. Reduced taxation/spending would make 'some' people better of, I dont dispute this however the benefit would be to a minority of society who dont depend on any part of the state. There is a magnitude of reasons why rely on just the private sector for growth isnt going to work, one been that we now live in a global marketplace, the uk competes with other countries for business. There is cheaper countries to employ staff and cheaper countries to set up businesses. The best days are behind us. What we going to see over the next decades is the wealth shift from western countries to developing countries as a balance correction. The only thing that can truly save us in a way you will like is if we develop something that can be exported en masse and create employment here. The problem is we tend to sell the invention rather than the product as its a quicker profit.