In Britain, a poll commissioned by the Charities Aid Foundation confirms that public spending cutbacks and falling donations are conspiring to devastating effect. The foundation warns that as many as one in six charities believe they may close in the coming year, while nearly half say they are being forced to dip into reserves. One in three say they fear being forced to cut services.”   (The Week)

This situation is caused by a UK government that says it wants ordinary citizens and charities to do more and to rely less on government hand-outs, and then slashes public spending that eviscerates the very charities it hopes will take up the slack.  Conservative politicians never seem to learn, despite the experience of decades and reams studies of by professional economists.  Reducing taxes on the rich has no effect unless there is demand in the market place.  Rich investors will not invest if they can see no return.  You can reduce their taxes to zero, but it will  make no difference.  Taxes were reduced to the rich by Bush ten years ago in the US, and what has happened to the economy? Answer: the worst disaster since the Great Depression , and a currently anaemic investment stance from banks and big investors. So what happened, eh? (by the way, this dismal fact was never alluded to during the recent election).  US corporations are sitting on money mountains, waiting for the economy to pick up (and the peons to start spending again).

The way to boost the economy is to put more cash into the hands of poorer people – they are used to spending all they get, and by and large they don’t, or can’t, save. A no-brainier.