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Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Ed Miliband, Labour's Dirty Benefits Culture Election Winning Secret Revealed

Politics / UK Politics Jun 07, 2013 - 04:46 AM GMT

By: Nadeem_Walayat

Politics

Labour leader Ed Miliband with much fanfare announced that Labour too will now crack down on Britain's benefits culture by capping social security spending following an 2015 election win.

"We will tackle the deep, long-term causes of social security spending and tackle the costs of failure like housing benefit. They (Conservatives) will not."

"Controlling social security spending and putting decent values at the heart of the system are not conflicting priorities. It is only by reforming social security with the right values that we will be able to control costs."


Labour politicians often put forward the argument that the state should step in at times of economic downturn / recessions to help support those who have lost their jobs.

However the following UK welfare spending graph illustrates a dirty secret that Labour does not want you to know!

The graph illustrates two key points -

1. That even during Labour's low unemployment boom years of between 1997 to 2007 the amount spent on welfare benefits increased in virtually every year, where from 1997 the annual spend more than doubled from £52 billion to £110 billion by the time of the May 2010 Election.

2. That in the run up to each election, the Labour government would go on a welfare spending rampage as illustrated by the 12% jump in welfare spending in the run up to the May 2010 General Election, similar increases took place prior to each election regardless of economic fundamentals.

The reason for this is that it is in the Labour party's interests to bribe voters into creating permanent pools of vested interest voters, which by the time of the 2010 general election meant that 90% of the population were in receipt of benefits in one form or another. The election consequences of which were that despite Labour presiding over the worst economic collapse since the Great Depression leaving the country virtually bankrupt, despite failing to regulate Britains banks that had become a crime syndicate, despite abysmally failing to control immigration, and off course despite taking Britain into a costly illegal Iraq War, the Conservative party still FAILED to win an outright majority at the 2010 election as Thatcher had been able to achieve in 1979, which was as a direct consequences of Labour's twin policies for turning everyone into a benefit claimant and out of control immigration so as to create large pools of vested interests voters that virtually ensures that no matter how disastrous a Labour government turns out to be that the Conservatives still cannot win UK elections unless a fundamental shift takes place in either of these two out of control policies which as of writing is not manifesting itself as both immigration continues at the rate of 150,000 per annum and the amount spent annually on benefits continues to increase.

Furthermore the graph illustrates that the coalition government has in reality not implemented any significant economic austerity in terms of welfare spending cuts because the welfare budget still continues to increase each year. This is for similar reasons to Labours welfare spending rampage in that cutting benefits even by a small amount will result in many lost votes that further ensures that the Labour party is probably heading for a strong election win in 2015.

And there is another flaw at the heart of Britain's welfare spending, and that is the FACT that the whole budget is being paid for with BORROWED MONEY. This translates into Britain effectively being bankrupt and this bankruptcy manifests itself in an Exponential Inflation mega-trend.

Most People Are Now Vested Interest Benefits Claimants

Earlier this year, the BBC with much fanfare published it's Great British Class Survey, which sought to extend Britain's class structure from the three traditional classes of upper, middle and working class to now comprise 7 social classes of Elite, Established middle class, Technical middle class, New affluent workers, Traditional working class, Emergent service workers, and the Precariat.

However there is a huge hole in the BBC's analysis and that is it excludes the 8 million of adults of working age who claim benefits of which at least 5 million are permanently on benefits and thus comprise the benefits class that amounts to 22% of those of working age in Britain, that would comprise near double the class referred to as the Precariat.

Furthermore the benefits class social pecking order would be linked to the amount of benefits they are in receipt of and therefore the benefits class would tend to straddle the whole range from the Precariat right trough to the established middle class as illustrated by the recent case of Mick Philpott (found guilty of killing his children in a botched attempt to increase benefit payments) who was reportedly in receipt of £60,000 in benefits per annum which is an comparable income to those in the Established middle class. The breakdown of the benefits class is further complicated when those in receipt of tax credit benefits are taken into account, who tend to be perceived as the more deserving of benefit claimants.

Therefore a more accurate breakdown of Britain's class structure would comprise 8 classes that includes the benefits class which is overlaid over the BBC's 7 classes as illustrated below -

Note the above excludes 11 million pensioners.

The above graph clearly shows that there exists a huge vested interest in the Benefits Culture, which has come about by Labour Party design as the last Labour government attempted to maximise vested interest voters that it was continually seeking to expand breadth of in an attempt to bribe the electorate into repeatedly voting for a Labour government, regardless of the inflationary consequences of spending money that the country does not have (printing debt).

The benefits culture can be seen as a Labour party voting block that the Conservative party can only seek to defeat at the next election by fragmenting i.e. turning one part of the benefits culture against another part in which respect the Coalition is putting In-work Benefit recipients up against Non-working benefit recipients.

The benefits culture is a disease that encourages laziness and jealousy of those who become successful through hard work, hence why those most vocal against successful immigrants tend to be lazy benefit claimants who have literally not done a days work in their lives and don't intend on doing so , but still spout the likes of the poles have taken our jobs! This despite the fact that it was LABOUR policy to import working class immigrants due to the fact that they would tend to vote LABOUR!

Unfortunately most voters are gullible and easily bribed so Labour looks set to win the next general election as they will promise everyone everything under the sun, so the only thing hard working people can do is to prepare themselves for the coming inflation stealth theft of wealth that Labour election bribes will deliver.

Many vested interests decry the Tories as being the nasty party but the really nasty party is Labour because they tell the poor they cannot do anything for themselves but instead must rely on free money and services to live on and all they want in exchange is their vote the consequences of which is that Britain continues to die a slow death.

The bottom line is that the next Labour government will ramp Britain's Inflation mega-trend towards rates that average more than twice that which have been experienced over the past 5 years i.e. as I indicated in my recent article (Mervyn King Mission Accomplished, Bankster's Saved, Debt Monetized Via QE Stealth Inflation Theft )

An average rate of 4.5%, with a trend oscillating between a rate of 7% to 2.5%, which is the probable UK inflation trajectory over the next 5 years, with real inflation averaging at 6% per annum.

Source and Comments: http://www.marketoracle.co.uk/Article40800.html

Nadeem Walayat

http://www.marketoracle.co.uk

Copyright © 2005-2013 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 25 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of four ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series.that can be downloaded for Free.

The Stocks Stealth Bull Market 2013 and Beyond EbookThe Stocks Stealth Bull Market Update 2011 EbookThe Interest Rate Mega-Trend EbookThe Inflation Mega-trend Ebook

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 600 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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