Basic (Very Basic) Economics

[poliphilo]

OK, so the rich are also going to be hit by the chancellor's latest measures. Good. But will it be proportionate? Will increasing tax on  savings inflict the same amount of pain on the rich as decoupling benefits from the cost of living will inflict on the poor? Of course not. The rich can take it. They have resources. A bob or two to fall back on. That's what being rich is all about. They can take losses without it affecting their quality of life. The poor, on the other hand, feel every cut. A tiny loss in income can spell the difference between eating and not eating, or eating something nutritious and eating rubbish. Take thousands off a millionaire and he's still a millionaire; take a few pence off a poor family and you make them destitute. 

I don't think our politicians understand this. Any of them. They're all rich- most of them by inheritance. Is there a single person on either of the front benches with first hand experience of poverty?

Comments

[heleninwales.livejournal.com]

I'm sorry if you felt that I intruded on a private conversation, but I normally assume that comments made on public posts are open to reply from all readers.

One of his points is that your rich politicians -- whom I would think one must include amongst "The British" -- are not being fair.

Exactly! And because the British people believe in fairness, they are calling the politicians on their policies. If we didn't care, we would let the politicians carry on being as unfair as they liked.

With regard to our industries, it's not EU regulation that threatens them. Fishing has already been destroyed by over-fishing and the Icelandic cod war. (Note, Iceland isn't in the EU.) Our heavy industries were destroyed by the Thatcher government pursuing Milton Friedman's laissez faire free market capitalist theories. Our sole remaining iron and steel producers are owned by an Indian company -- again nothing to do with the EU or government regulation, simply the power of The Market.

[veronikos.livejournal.com]

Perhaps you are right. I should have carried on my conversation with poliphilo by private message.

[poliphilo.livejournal.com]

I'm sorry to lose your comments.

Feel free to message me anytime.

[veronikos.livejournal.com]

Me, too. I find most people to be ire-filled creatures incapable of seeing anything but their own points of view, despite their alleged, lip-service to tolerance and compassion. You're a noteworthy exception, of course. And...just between us...I know it comes from you having looked your own self in the eye. As have I.

My spouse is English, and I travel widely in the UK. I'm accustomed to the very short shrift that most British give Americans, just as a matter of course or habit. People deny such outwardly, but the inner sensorium cannot be fooled. :D

[poliphilo.livejournal.com]

Political opinions shouldn't be taken too seriously. Mine were formed in opposition to my parents' because that's the sort of relationship we had. I stick by those opinions but I know they're not essential.

We Brits were king of the castle and you replaced us. It's something we find hard to forgive. :)