During these times of austerity becoming unemployed is pretty much a common event.
Thank goodness we have a welfare system that prevents our plummet into poverty going too far.
To help us even further, George Osborne has introduced a 7 day wait before entitlement to benefits kicks in. This is fabulous because the newly unemployed person, ordinarily distracted from looking for work because of the application for benefits process, can apply all their focus in that money free motivational week to getting a job.
For those feckless and reckless individuals who haven’t saved for this eventuality there’s always Tam the Bam your friendly local loan shark.
Most communities have a Mr The Bam who’s more than willing to ply his wares.
So, Mr/Ms I’ve just lost my job, acquires, say, £100, to see them through this tight week.
After a brief spell of unemployment, they get themselves back into low paid work, or if they’re really lucky they find a job back with Poundland, doing the job they were laid off from for their benefits under the government’s flagship workfare programme.
So, they have to have that uncomfortable chat with their lender – sorry, I’ll not be able to pay you back for a while….
Weeks turn into months – months into years – and with a great sigh of relief, after 7 years, the final part of the debt – which turned into an exorbitant £1000 due to his, er, overheads – is paid off.
We’ve learned something here – don’t go to the back street charlatans…
So, unemployed again, they look to legitimate payday money lenders.
Once bitten though….
Let’s see what happens if the same 7 year debacle happens with, say, a loan taken out with the same interest rate as Wonga for example.
Let’s work out what happens if you take out that same £100 loan at their rates and fail to pay anything back for 7 years.
You’ve heard their interest rates are high….
Oh look, Martin Lewis, the money saving expert has done the sums for you….
Let’s see…with an APR of 4214%, over 7 years….
That’ll be £23.5 trillion please.
I’m sorry? You borrow £100 – pay nothing for 7 years and now you owe a sum more than the entire debt of the UNITED STATES?
Surely that can’t be right?
Take a look here – Martin Lewis is truly wise – he can’t be wrong….can he?
Of course he’s wrong…
They’ve just increased their APR by 1600% to 5853%
At that rate, according to my mathematically challenged calculations, if you took out a loan at that rate and paid nothing for 7 years, the debt would be, er, more….
Ok, Wonga don’t do long term loans, but for purposes of illustration….
Every month 1 million familiesin the UK take out pay day loans just to make ends meet.
SOMETHING MUST BE DONE!! I hear you cry.
Surely our elected folk – who are of the people for the people – could come to the rescue?
A cynic might see a link here –
Adrian Beecroft has donated £593,000 to the Conservative party since mr Cameron has come into power.
Adrian Beecroft is the chairman of Dawn Capital – a major stockholder of Wonga.
Ministers who previously described such rates as ‘obscene’ are now charging business executives from companies including Wonga £1250 for face to face meetings to help them develop ‘business friendly policies’
And still we’re pedalled a ‘Saints and Scroungers’ view of society.
We live in a country where there are at least 2 million too few jobs. A country where you’re much more likely to get a job if you already have one, where there are at least 6 applicants for every vacant post.
It suits our government to blame the unemployed for unemployment. No, hold on, let’s forget ‘unemployed’ let’s have ‘worklessness’ instead.
Even the not so loony left are using this rhetoric of austerity, of we’re all in this togetherness.
I’d like to take a moment to explain one of the massive reasons for unemployment in our fair country.
INDUSTRY IN THE UK HAS BEEN DECIMATED.
WE HAVE OUTSOURCED SLAVERY.
We cannot compete with countries on the global market who treat their employees like shit and pay them a tenth of what they’d get here.
Already big conglomerates are talking about leaving China because of increased wages, moving on to harvest (their words) poorer countries like Indonesia and some poorer African countries.
We are not paying our workers too much – why else would millions of low paid people in the UK be in receipt of housing and other benefits just to get by?
The same low paid workers who we’ve just whacked with an invisible tax – the bedroom tax – where people have lost money because they have too many bedrooms in their home – with no alternatives available our lowest paid workers are being cynically penalised.
Half a million peoplein Britain are using food banks – what on earth happened?
There is another simple answer here –
PEOPLE ARE POOR BECAUSE OTHERS ARE WEALTHY
Ok, you can put in as many errant banker stories here as you like – or tax evasion/ avoidance scans that appear only to be available to the hysterically rich.
But it’s relentless…
Even now the ridiculously profitable utility company, EDF, are demanding double subsidy from the government for Hinkley C nuclear power station – not only are the government paying for the build of the power station – they have agreed to pay twice the going rate for the electricity produced there at £100 per MHW.
This is money that the government could put towards…well, us really…is greasing the palms of the greedy
And the Queen. She really does deserve a mention in this current climate.
She has been awarded a 5% increase in her er…award, from £36.1 million a year to £37.9 million following record crown estate profits.
Has she been more queenly? Does she get a bonus if she exceeds her ‘…and what do you do ?’ quota?
In 2012 Forbes estimated that HRH inc. is worth £44 billion
You’d think in this time of we’re in this togetherness there’d be a little empathy…perhaps even solidarity.
And now our great leaders are about to award themselves a £10 thousand increase. What can they do? This has been calculated by independent assessors.
Good old Cleggers says he will refuse to take it – but he can’t speak for his colleagues….
Well, you can’t blame them, they only get £60 odd thousand a year…. Oh, and around £100 thousand in expenses…how do they survive?
And they accuse people on benefits of having a sense of entitlement.
It is time to
STOP AND THINK
If they want a polarised country, with millions of people disenfranchised and without hope then our government are doing exactly the right thing.
They have turned the poor, the disabled, folk on benefits into some odious enemy.
The thing is – I don’t think that’s their intention. I believe they want the masses behind them – working together with the single aim to make our lovely – and it really is lovely – country great again.
My fear is that with their stunning lack of credibility, their lack of understanding and compassion for their fellow Brits, this Eldorado is a long way off.
It’s time to change.
Walk a mile