Quote:
Originally Posted by Chris
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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depends who is taxed from, the poorer someone is the more likely they will spend all their income. Thats basic logic as someone who is on JSA eg. will likely spend 100% just on essentials.
Whilst someone paid 100k a year their tax in all likelyhood would just goto savings if not on tax. Even at 20k a year, someone on 20k a year is less likely to spend all their income than someone on 4k a year.
Money in savings does nothing for the economy.