Poverty in Britain

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These British Department of Work and Pensions show that in 2010, an additional 900,000 people dropped below the poverty line, it was the first year in power, the government Cameron. Earlier this year, Oxfam said that currently in the UK more than 500,000 people rely on emergency food donations. Hence the conclusion — the doctrine of austerity does not benefit the community in Britain and around the world.

"The shocking reality is that hundreds of thousands of Britons are turning to food aid. Reducing social security gone too far, leading to poverty, deprivation and starvation on a large scale. It is unacceptable that this is happening in a country still in seventh place on the level of wealth in the world, "- said in a Financial Times reporter April Oxfam chief Mark Goldring (Mark Goldring).

British government portrays the unemployed as lazy "shirkers" to justify measures against them. But this story is not about the government's picture, and how the situation has worsened in the labor market after the austerity measures. According to the Department of Work and Pensions number of poor children in working families has doubled. Now workers often hired for temporary work without permanent contracts and salaries.
 

The austerity measures exacerbate the effects of the crisis for the majority. Workers' wages fell to an all time low, much lower than during previous crises — explains published last month, the results of research Clare Crawford (Claire Crawford) from the Institute of Financial Studies.
These circumstances have led many to rely on payday loans. Independent published data showing that in the past month, one million families have turned to these "legal loan sharks". Their report explains how 38% of people use these loans with an interest rate 5000%, taking it to buy food and other essential goods.

Severe and painful cuts and prospects caused commentators to suggest that the government is challenging the social contract. This agreement — the obligation of the state to the people that make the legitimate authority. Official statistics of the British and the World Health Organization shows that in the winter of 2011-2012. 7,000 people died because they were unable to heat their homes. The government signed a contract with a private company ATOS, so she found out whether people with disabilities eligible for state aid. In one year, 10,600 people died, which passed committee on employment. ATOS is often consumed during 15 minutes to test the disabled. "The tests are unfair and unethical", — told the BBC Dr. Wood (Wood). He worked as a medical professional, and has been hired to conduct the tests. A private company has ordered him to edit and distort reports, hiding scandalous facts, because such unethical practices, he left the company.

The austerity measures are not working.
In autumn 2012 the IMF published data on levels of austerity measures in Europe in comparison with the change of GDP for the past four years. These data demonstrate the relationship: the harder the economy, the greater the fall in GDP. In Greece, the worst thing of all — save 15% caused a 18% decline in national income.
The impact of unemployment on the economy on an international scale is obvious.
In a recent report, British union PCS compared countries that used the austerity measures, with countries that have continued to spend in 2011. Japan and the United States did not use austerity measures and unemployment fell. On the other hand, the economy in the euro zone and Britain increased unemployment, and again, Greece suffered the worst consequences.

The doctrine of austerity is based on the mistaken idea.
Two economic document reinforced the determination of European politicians to continue saving. Economists Reinhart (Reinhart) and Rogoff (Rogoff) said that the country will face serious threats approaching the level of debt to 90% of GDP. This figure was the cause of saving ads. But in April, it has been shown that the calculations were wrong — this is one of the most famous and probably the most serious economic mistakes.
Italian economists Alesina (Alesina) and Ardahan (Ardagana) provided another justification for austerity measures. In April 2010, they introduced the European finance ministers to the idea that austerity measures are examples of success. After that, writers such as Mark Blyth (Mark Blyth) showed that their study is based on anomalies and distortions. One such example, which offered the Italians, was Ireland, which has been the growth and economy mode in the 80s. But this can be explained by the fact that its main economic trading partner was Britain, which was experiencing economic growth.

Austerity is powered by 1%.
While for most people saving — severe suffering for the super-rich — quite the contrary. Stock markets in Europe and America returned to pre-crisis highs. Salary average British CEO in 2012 increased by more than 10%. These are the results of research consultancy MM & K. The richest 1% has increased its stake in obschebritanskih revenues from 7% in the mid-1990s to 10%, based on analysis of Resolution Foundation. With these analytical data specialists agree OECD, recommend Britain to abandon austerity measures, in particular, to solve the problem of inequality. Center high salary (High Pay Centre) — an organization that is considering the sharp increase in salaries of executives. It considers the prosperity of super-rich in historical context. Britain returned to the level of inequality not seen since the 1930s.

The government is working on the 1%.
The austerity measures are having a devastating impact on the majority of people and their theoretical justification was minimal. But Finance Minister George Osborne (George Osborne) is adamant — he wants to reduce social spending and austerity continued for another decade. It supports the approval of critics, that the government has an ideological base to attack social security. Their commitment to the dogma means that they will continue to cost-saving measures as long as they can, reducing the increase in social security, which has been in the XX century. This includes social housing, universal health care, social benefits. Confirming the argument that the government is working on the 1% is the new tax laws and the resolution of corporations use offshore tax. In April of tax for those earning more than £ 150,000 has been reduced from 50% to 45%.

Source:Rushton: Poverty in Britain, Steve Rushton, Occupy.com, July 9, 2013.

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