Plan A is wreaking havoc on the poor

This week I’ve been struck again and again by the determination of our government to make the poor suffer for the mistakes of millionaire bankers. Yesterday, George Osborne re-iterated once again how, even with GDP figures showing economic stagnation and evidence to show living standards falling, he was unwilling to rethink his plan for deficit reduction. That interview was followed by a news report on the mistreatment of people on incapacity benefits. In an attempt to cut the welfare budget the government is alienating the most vulnerable in society and is putting the sick at risk. Finally, this morning I heard that Mayor of London Boris Johnson is calling for the scrapping of the 50p tax rate for those earning over £150,000 on the grounds that it is making it difficult for London to ‘compete’ with Geneva and other places the extremely rich like to hang out.

Together, these news stories say that some of our most powerful politicians have lost sight of what ought to be the overarching objective of economic policy: to maximise the well-being of the whole population while protecting the most vulnerable. Instead they seem to be dogmatically committed to protecting the interests of those at the top at the expense of those at the bottom. Paying off the bankers’ debts through making the poor poorer but allowing the rich to stay rich not only risks greater unemployment and suffering but also the further growth of inequality. As one of the most unequal countries in the developed world we don’t need any more help on that front.