Realist, not conformist analysis of the latest financial, business and political news

The Bit That Owen Jones Misses

Yes, obviously, coronavirus, collapse of capitalism etc.

Which brings us to our social crisis. This is a society in which a quarter of adults have no savings, and for those aged 22 to 30, that rises to half. There is no financial cushion if their income evaporates.

What do you mean no financial cushion? We’ve got this thing called the welfare state. We spend some 15 to 20% of everything upon it. You lose your job you get money. You can’t pay the rent you get Housing Benefit. Even, your income drops below a certain level you get cash.

What do you mean there’s no financial cushion?

Ah, perhaps you mean that the current welfare state is more than a bit shit and despite spending 15% of GDP on it it doesn’t work? Great, then let’s stop spending 15% of everything on shit then, no?

Either we have that financial cushion, the welfare state, in which case Owen’s statement is incorrect. Or we do have it and it’s not a cushion, doesn’t in fact work, in which case let’s stop having it.

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1 year ago

Go back to the Mutual Societies which worked far better for both unemployment cover and health cover.

John B
John B
1 year ago
Reply to  Phoenix44

75% of the UK population had that until 1911 when the Liberal Party in government stopped that with the National Insurance Act for purely political reasons, to steal a march on the newish Labour Party and against popular opposition particularly trades unions who ran their own schemes.

The Act’s lobbyists included for-profit insurers who were losing out to the mutuals, friendly societies, etc and the doctors who were accountable to, hired and fired by committees of the insured – uneducated toiling class with dirty fingernails, bosses of men of letters closely related to God… that was intolerable.

John B
John B
1 year ago

‘ This is a society in which a quarter of adults have no savings, and for those aged 22 to 30…’

They have credit cards instead.

Not so long ago more in that age range had little or no savings, nor did they have credit cards.

In Socialist Countries nobody has savings because they have little surplus cash to save, there’s nothing to save up for to buy anyway, and inflation means better to spend what little you get when you get it.

1 year ago
Reply to  John B

Indeed, I thought the socialist ideal was that nobody have savings because savings mean inequality and that is WROONGG!!

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