The post you are reporting:
Surely the more jobs that businesses can create, the more people will be employed and so then there'll be more disposable income that they will have, this then leads to more spending and more growth for businesses as more people are buying things.
The problem (as I see it) is that the more unemployed people we have, the less growth we'll have and so less spending will be done, so businesses will contract and more people will become unemployed and so the cycle goes downwards.
To encourage growth in business, which means taking on more people and creating employment, there has to be a better reason for people to want to work as the benefits system is now greater than a safety net, so as I mentioned a few weeks ago, I still can't see why raising the minimum pay to say £10.00 per hour, more people will want to work and increase their pay/income over their benefit payments and the companies would get paid for the increase in their wage bill - the Government would pay out the same amount of money, but this time, to employers.
There would need to be tax-breaks and other incentives (business-rate reductions, cheap loans etc. ?) to encourage businesses to expand and grow, but it will have to start somewhere.
Too many people are being made unemployed (Barratts are the latest to shed over 4,000 people); this in turn, means that they'll have less money and so will the government - in less tax income and greater benefits payments.
What am I missing ?
Roger
