LFN-
ttosca Unemployment is falling, and never went too high. It's because of our flexible labour market. There is a simple trade-off between jobs and pay, and unlike you, I don't think unemployment is a price worth paying. Rather than destroy jobs by forcing up wages, why not cut taxes funded by cuts in benefits?
'Unemployment' is more than merely a figure. It is a real quantity which affects peoples lives individually as well as the economy as a whole.
The levels of unemployment have been down by zero-hour contracts, many more part-time jobs (even though people want more hours), and exploitative schemes like workfare.
It's not just the figures which are important, but the quality of employment.
The fact is that even many people in full-time paid work are not paid a living wage, and therefore have to receive benefits which amount to a subsidy of wages for corporations.
Job insecurity, in the form of part-time contract work, zero-hours, and other mechanisms of a 'flexible' job market not only increase job insecurity, but hurt the wider economy by decreasing consumer spending.
Rather than destroy jobs by forcing up wages, why not cut taxes funded by cuts in benefits?
Secondly, I don't think it's the case, at least with larger corporations, that there is a trade-off between destroying jobs and paying a decent wage. This claim was made about the minimum wage, and it turned out to be utterly wrong.
Sure, small mom and pop stores may not be able to hire as much, but then we could enact a 'living wage' law for corporations over a certain size (say, 1000 employees).
The bottom line is that there is depressed demand in the economy because people aren't being paid enough, and wages have fallen considerably behind inflation. Before the crisis, spending was kept up through credit. The Tories are now trying to re-inflate a housing bubble so that house prices rise and people feel richer and spend more money. This is not a long-term solution and will cause another crash.
One way or another the imbalance in the economy needs to be corrected. If you don't want to pay for welfare, then make sure there corporations pay a living wage.
But you can't have a low-wage, low corporation-tax economy along with no welfare. You'll end up with millions of poor and homeless people and all the demand sucked out of the economy - which is pretty much where the Tories have been taking us for the past three years.