What you have in the comments here, is a circle-jerk of indignation from people who enjoyed public spending (largely paid for by the taxes levied on banks bankers by Labour…) which, when the golden goose was killed, suddenly dried up. The public sector are now having a 2 minute hate against the people, like me and millions of others who pay taxes but don’t take much back.
The profit motive is not bad, nor does it lead to worse outcomes than any alternative. Lord save us from the good intentions of public-sector busybodies. CS Lewis put it best:
Of all tyrannies, a tyranny exercised for the good of its victims may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baron’s cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end, for they do so with the approval of their own conscience.
The fact is the profit motive has delivered consumer goods to the masses in plenty only royalty in previous societies could possibly imagine. The profit motive is best at allocating resources to those who can use it most efficiently. The alternative to resources going to the most efficient, is they go to the most powerful. And that is why socialism, in its command-economy, market-hating form tends to lead to an enormous pile of corpses.
But because markets ain’t perfect we use taxes to fund that which is necessary, but unprofitable. Dealing with recently released criminals for example. And there is a legitimate argument to be had about we spend on such things. Tories, broadly want to spend less than labour. And especially when there’s been a financial crisis, and the shoulders which bore the the burden of paying for the lovely state spending are now smaller, and fewer in number. There is less money, broadly because Labour taxed all it could, during a boom, and wondered why the money dried up suddenly.
Let’s get some facts straight
The bank bail-out cost the taxpayer almost nothing.
The big increase in the deficit was caused by a sudden and sustained drop in the tax take as banks suddenly became less profitable or loss-making. Such is the scale of the loss, it will be a decade or more before the tax take from financial services returns to pre-crisis levels.
The mechanism by which 2. results in lower tax-take is NOT avoidance.
The toxic, tribal hate-fest shown in that comment thread is based on shaky foundations. The banking and broader financial services industry has lost over 200,000 jobs or something like 20% of its workforce. The idea the Financial services workers have not suffered or learned from the crisis is ridiculous. There is no comfortable parasitic elite, earning off the poor down-trodden worker. It’s been pretty tough for everyone, and pointing at someone’s (imagined) pay packet helps no-one.
And by that I mean “look. They have an iPhone, so they can’t be poor” as well as “he earns £100k, so what does he know about anything”.