The Flow of Money



It is important to understand that money is something that flows around and around and that people on benefits or those who are paid wages do not store all their money in a bank or under a mattress never to be seen again. They buy goods and services to companies which pay wages and taxes, their employees also pay taxes and buy goods and services, and so it goes on.


In understanding this, it can explain better the notion of welfare although it does not excuse it. If everyone was unemployed on benefits, this system would fall apart. The economy has always needed to balance its consumers and its producers in a way I kinda understand. The important part to understand if being on benefits does not make someone a burden of society but the culture is not working to work is what damaging this country’s economy and mental well-being.  


An area where changing the flow of money has been important is in social care. Before direct payments and personal budgets, service users may provided care and support but they were not a direct part of the flow of money. As personal budgets grow, that fact the flow of money now includes them, it means that they should have a greater say in the way  services are delivered to them, and have the opportunity to employ their own personal assistants.


This means that the government could add citizens into the flow of money in other services like education and health. I am not sure how well it would work but it is worth considering.

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