This is very revealing.

An oldie-but-goodie from the LSE archives.

Getting a job is not necessarily a route out of poverty.

Rising costs and falling real wages means that having a job won’t necessarily allow you to make ends meet. What’s worse, the austerity programme is hitting low-income households disproportionately hardest.

One of the most marked impacts of the economic downturn across most northern economies has been a growth in inequality. This is certainly true across the UK, where deficit reduction has been overwhelmingly managed by cuts in spending rather than tax rises – and the main tool of increased tax is a regressive one, VAT. So the economic downturn has hit those without work, and those working on low incomes hardest, and the government’s reaction to deficit management has reinforced that trend.

This is patently unjust: without over-emphasising the old (but still true) mantra that those who created the crisis are not paying for it, there is now wave after wave of problems hitting people on lower incomes, with the troubles faced by those in low-paid work becoming increasingly serious.

This is not healthy for them, or for the millions of children growing up in hard-working but highly stressed and struggling households. And it is definitely not healthy for our wider economic position, as millions of pounds of consumer spending are squeezed out of the economy, and as the gaps in society widen, throwing social cohesion out of the window.

We can, of course, change this.

Source: We can’t go on pretending that poverty is solved by getting a job | British Politics and Policy at LSE

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