behind the headlines

Cutting government spending by 18 billion

Wednesday, August 18, 2010 · Category Politics · comments 0


Huge numbers. As it looks right now, we are about to get a right-wing Government for the next couple of years. These politicians have been argueing and negotiating some 5 weeks now and the end is not even in side.

Main issue: cut Government spending by 18 billion

18 billion. Lots of money. As an entrepeneur to me it seems simple though. If my business fails tomorrow I have no rights to receive social benefits in the first 6 months. Although I have working for all those years, this right is only given to people working on a payroll. So in the case of self-employed workers, the right is wavered.

What we spent on Social benefits each year

169 billion a year. Yes, that's right. We have 1.4 million people - about 20% of our labor force - living of social benefits and they receive 169 billion each year, which in turn is 30% of what our overall labor force total income

Now I may sound brutal and cruel, but if one has to cut spending by 18 billion, i would suggest we just cut some of those social benefits. Seems fair to me. That's about 4,5 billion a year; or 2.6% of each social benefit payout each year. Besides it might work as an incentive to go out and find yourself a job, any job.

Of course if we have to work out the details we will find groups of people who really need every penny of their social benefit. On the other hand for sure there are enough other groups who in turn can do with less.


There are no comments yet


Write code