Re: "Hand to mouth"
@ Alan Brown
"Tax credits are a way of subsidising shitty employers whilst also putting money in the hands of government employees who wouldn't need to be there if wages were decent enough that tax credits didn't need to exist."
Not quite. Tax credits inflate prices and allow prices to inflate because the gov can always steal a bit more money for its redistribution efforts. If the prices rise too much for the local (relatively) poor then they have to move where they can afford (same as always, no entitlement, real world) or be given wealth redistribution by the gov to allow them to stay without affecting the prices. But if the redistribution stops (say we cant afford it) there is a crash as prices inflate and jobs are lost.
Imagine if all those people in london on tax credits stop being given tax credits. The people must move to an affordable area (rest of the freakin country) like the rest of us, living within our means. This could lead to all the cheap workers leaving london and suddenly there is a massive worker shortage which (as happens in markets) creates demand for either lower prices or higher wages paid for by the customer!
If the customer aint willing to pay enough to employ the staff then they dont value the service that much. If they do then they will pay for it. The basic concept of capitalism plays out and working tax credits become obsolete as they were before.
Btw, yes they are socialist and not capitalist. It is the socialist concept that the gov knows how to spend your money better than you do. The public system takes peoples money and then bribes voters with it. However by reverting to capitalism there will be a crash as the unnatural bubble from the state pops. Either prices would fall in the area to accommodate the lower wealth of the area or jobs will go as the cost per item rises (more competition for less spending power)