How the government spends your money | BBC Newsbeat
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- Опубліковано 26 кві 2015
- You pay tax on everything from trainers to tampons, but what happens to your cash? This is Newsbeat's guide to how the government spends your money.
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You never metioned the 55 BILLION pounds going to the Military every year and increasing?
Hope you like this one guys - it's all about what happens to the money you pay in taxes. Enjoy, and let us know what you think...
BBC Newsbeat personaly I find the spending to be Ludacris, don't you think the social programs and welfare are getting out of hand on spending? Call me I cold capitalist if you must, don't you think It would make the country better if these are privatize? As not only this would save the tax buyer a lot of money but also can create wealth for the people, not to mention it will be voluntary, so people can choose what to spend and what not to.
I do not understand why uk keep using social programs and socialise government, as not only this dosen't help people get out of poverty but will only make more people poorer in the long run.
I understand uk has a mixed economy, however, to say we are a free market capitalist nation, is to say we have dragons and unicorns roming the land.
Okay to a point, but misleading. Job seeker benefits are part of the £222bn welfare, but only about 2% of the welfare budget, and less than 1% of all Gov't spending.
The way it's rattled off after pensions--one of the biggest costs (more than 10% of all Gov't spending)--makes it seem far bigger than it actually is. Make the facts clearer, not confusing.
Anarchtea You're absolutely right. Pensions take up the biggest chunk of the welfare budget, with job seekers coming in at just a fraction of that. Perhaps we should have made that clearer. We were just trying to illustrate a few of the things that are paid for with the welfare budget. Thanks for the feedback.
Thanks for your reply.
Hope I wasn't too harsh, just there's a large misconception that job seekers accounts for a huge amount of the welfare or total government budget.
When votes could be based on such ideas around times when money and benefits are so high on the agenda, that could change who we're governed by. Too often, news (not only BBC, other news outlets are available) discuss benefits as one large mass without drilling down into what--and who--that money goes to.
Good to see these videos try to explain elections, we need more political engagement. I'm rambling now. Thanks again for the reply and have a good day!
Anarchtea You make a good point on job seekers. One of the aims of these videos is to try and debunk a few myths, but we maybe missed a trick here. Thanks for the reply and hope you enjoy rest of videos. Thanks for watching.
Anarchtea I'm just bit concerned how excessive the spending is on the goverment, since they can only do three ways that are take, stop and let things in.
In short, don't you think the people of uk getting a bit careless how much power the goverment has on the people and their spending?
i like how he said taxis
This is a really good way of showing it.
llinossmiles Thanks you! Let us know if there's anything else you think would be good to cover.
I looked few pages, I didn't find anything about the £84 bi, please, could you post here where you got it from?
Thanks.
Absolute BS in 2023 cited by the OBR, the government spent a whopping £350 billion out of the £1038 billion on 'other' expenses. Only £83 billion and just over £100 billion went onto education & health services!
A bit late, but are you taking into account that a very large % of the money spent is subsequently pulled back...in taxes?
It's nice running rackets around town when you're the one writing the rules.
Ii was having to borrow money to balance the books I would cut all foreign aid and anything like it straight away.
Fantastic
The government pays over £50bn in interest? Why do we borrow so much? Long term wouldn't it be better to borrow less and reduce national debt ?
Yes. Hence the spending cuts to reduce borrowing
***** Yes, but the debt is here from reduced taxes being able to be payed from a reduced economy, while not reducing essential public services. When the economy recovers the deficit would be pluged
Question, how can the issuer of a currency (ie the UK govt) borrow its own currency?
The government 'borrows' money/currency by selling government bonds or gilts, which are essentially just IOUs, to commercial markets - banks, corporations and even other countries - in exchange for cash. N.B, Bonds cannot be 'spent' like cash or money, they are more like a saving investment for the person/entity holding them as once they mature, i.e, once they are due to be paid back in 5 or 10 years, they gain interest. This partly explains the term you may hear from politicians about the 'cost of borrowing'. The rate of interest on gilts is, among other things, set by the Bank of England. The higher the interest rate, the higher the cost of borrowing. Government bonds or gilts are seen as very valuable assets to own by entities in the commercial markets because they are guaranteed by the tax-payers of the country that issued them. Critics of this system will point out that government bonds are just another form of debt and that using debt to solve the debt just creates more debt. Also they may point out that what this system does is essentially prop up institutions like banks at the expense of the average person as it is the average person that is ultimately liable to pay for the cost of borrowing. Some people argue the way to solve this problem is for the government to just issue the money that it needs itself, without 'borrowing' in commercial markets, in order to pay for its goods and services. This way the government does not have to pay interest (the £84 billion in the video).
@@1jackal1 is the 84 billion not the deficit?
Central Bank is a private institution granted with the monopoly of money creation in that country (granted by the government). The process of borrowing yet underlies usual credit rating procedures. The intention of borrowing money or creating more money is to stimulate the economy and by that some level of growth is expected which then makes it 'ok'. It's a very fine act though and government usually use crises to over-borrow and it's of course the citizens who will carry the burden in the long run. If all debt would ever be paid-off you'd see a massive increase in value of your currency (like what a GBP was worth some 100 years ago or so). In essence, this process is all about the relation of different currencies quantity in the world. If all countries do this it should work out creating the illusion that the whole world is getting wealthier in absolute terms ;). Countries can also borrow money from other countries if their central bank's interest rate is lower however this is usually only happening in countries where the domestic currency and economy seems unstable.
What's the name of background music?
Ugh I need to know
For the love of money by the o'jays
Imagine paying £53bn per year on interests. That's abt £1,000 per person per year or something like £3,000 per household per year.
It all goes to the bankers so they can make money that way. The sheeple are so easy to fleece.
Damn, no wonder your tax is so high, your guy spending like a ludicrous.
...
Flippin heck, how wonder this country is broke, gosh don't you think the uk goverment could cut off on social programs and welfare? This is just ridiculous. You better off just fund one or two services, the army and the NHS, if can one It be the army.
The country is not broke (or at least it wasn't before the pandemic)
Good luck getting your TV tax out of me.
You'll have to do without my £157.50 as Ill be holding onto it.
Defund the bbc
Wanker
@@ster2600 Loved hearing from you. As part of the legally license free community it's my job to convince you that cancelling your license is a must.
@@DXmYb You comment on a helpful video about an important matter, saying that you want to get rid of the very public service which has provided this educational content. I hope you're proud to be making this country a worse place to live
@@ster2600 If you want your "public service" please pay for it yourself.
I don't want to be forced into paying the BBC even if I don't consume Thier content
@@DXmYbyour commenting on their video, so you are using their service to some extent
Bullshit