“If the ordinary wage-earner worked four hours a day, there would be enough for everybody and no unemployment — assuming a certain very moderate amount of sensible organization. This idea shocks the well-to-do, because they are convinced that the poor would not know how to use so much leisure. – Bertrand Russell

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You will probably know the story right now. That the way to get the UK’s economy growing is to get more people working. And the reason that they’re not working is because a bunch of young people are lazy, feckless and that people are faking mental illness to avoid work and sponge off the benefits system. Claims that the benefit bill now exceeds income tax revenue are flowing around right-wing media outlets to try to delegitimise the entire social security system.

The problem with the story is that much of it is flat out false and most of the rest is misleading to the point of meaninglessness.

To take that last claim head-on, Full Fact did a thorough debunking of it. The total UK social security ‘bill’ has been higher than income tax revenue for quite some time now, but even that point is utterly irrelevant. Income tax is not the only tax paid as a result of wages, National Insurance is too. So even if the benefit bill was only paid for out of direct taxation on worker wages, the claim would be false. But even that idea is itself wrong.

Direct income taxes aren’t hypothecated to pay for social security (not even National Insurance which only sits in a separate pot for historical reasons – all UK public spending comes out of the general Consolidated Fund). Saying that benefits are unsustainable because they cost the country more than it receives in income tax is precisely as illogical as saying that the UK’s military budget is unsustainable because it costs more than revenue from landfill taxes. National budgeting simply does not work like that (I’ll go into the MMT model of how national public budgeting for a currency-sovereign nation actually works another time).

The argument itself begs an important question. If the claim was true – what would its right-wing promoters want to do about it? ‘Cut benefits’, sure, but which ones? The state pension? Anything they personally claim? What kind of world do they think they would create if they ‘won’?

A similar story emerges when looking at young workers. A lot of newspaper lines have been written about unemployed people and feckless ‘NEETs’ who are neither working nor seeking work. To fix the economy, we’re told, those people need to be starved into working via benefits cuts.

Never mind that it won’t work (plenty of data shows that a Universal Basic Income – giving poor unemployed people more money, not less, is the key to improving life chances by allowing people to work under less duress or to improve their prospects through education and training rather than taking the only job that lets them eat tonight).

A large number of people who are ‘NEET’ are people who no reasonable person thinks should be told to drop what they’re doing and go work. The vast majority (in order of size of group) have a long term illness, are students, care for someone, or are retired while younger than state pension age.

What we’re actually seeing among vulnerable workers is a ladder being pulled away from them. There are currently approximately 700,000 job vacancies across the UK. There are approximately 1.8 million people currently unemployed (plus another million who are NEET). This means that there are about 2.5 people actively looking for work for every posted vacancy. This number rises to four people per job if you force the NEETs out to work regardless of their circumstances.

Those two numbers don’t equally divide into each other either. Employment isn’t fungible. A newly redundant senior civil servant isn’t going to take an entry level cafe job if they can help it. A newly graduated student isn’t going to walk into the vacancy left behind by the civil servant. Neither are going to think a job in Kent is going to be worth much to them if they both live in Inverness and can’t or don’t want to move. At some point this kind of ‘structural unemployment’ starts to matter more than the ‘frictional unemployment’ that happens when, for example, the laser engineer I used to be moves from one laser company to another.

“Folk my age and younger were sold the dream that if we played the game and worked hard, we’d be rewarded by being able to get ahead in life.”

This means that it’s simply not a matter of cutting benefits till people squeak and go get a job if the job doesn’t exist for them to get.

And it’s about to get worse, especially for young workers. The latest figures show that not only are posted job vacancies not there, the number of jobs in the economy may be shrinking – around 100,000 jobs were lost in April this year, mostly in sectors like retail and food services. This paints a picture of households starting to cut back on eating out or even on how much they are buying as an economic system rocked by global instability starts to bite.

It’s not just the poor who need more money, it’s everyone else too – at least insofar as the current economic structure is concerned. If politicians want a growing economy based on consumerism, then they are going to need more consumers (immigration rates are falling again and the number of births and deaths in the UK is already nearly net-zero…) and those consumers are going to need more money to spend on consumption. This model of economics simply is not working and is about to come right off the rails even before the impacts of the Iran war and the rise of AI really start feeding through.

Common Weal will soon be publishing a new report looking in detail at the state of income and inequality in Scotland and the results are shocking but one of the most shocking results is the extent to which households fall below not the official poverty line but the line of a ‘minimum decent standard of living’. Even relatively well off households are struggling to raise kids to a decent standard. Beyond this paper we’re going to have to look at how we can pull even those households up not just through better jobs and more income but by changing the way the economy works.

If you can’t afford to buy books, it shouldn’t matter because we have more libraries. Your house should be a decent home at a decent price, not a leaking mould trap that your landlord is profiting from. And the basic infrastructure of your life, like energy, should be there to support you, not pad the profits of the shareholders of the equity funds that own your energy supplier.

Folk my age and younger were sold the dream that if we played the game and worked hard, we’d be rewarded by being able to get ahead in life. What we actually bought was hard work without the reward while still being blamed for not working hard enough by those who got the reward without even having to do the work.

This says that the entire game is rigged against us. Perhaps it’s time to play a different game.