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Old 26-10-2011, 17:56   #63
Chris
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Re: Economy is worse under us, says Cable

Hang on a minute. Welfare is paid out of taxation. Taxation is money taken out of the economy. Taxation, especially excessive taxation, puts the brakes on the economy because the system of collection and redistribution is less than 100% efficient (money goes on things like utility bills for HMRC offices etc, not entirely into the pockets of welfare recipients).

Spending of money generated by work (ie wealth creation) is what stimulates our present economic system.
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