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Wales is a country of grant junkies, claims historian

THE Welsh are a nation of “grant junkies”, more heavily dependent on the public sector than almost every other country in the free world, a leading historian claims.

The only nation more dependant on the state is the special case of Northern Ireland, which is recovering from decades of terrorism, Hywel Williams will say tomorrow in the third of his six-part series for S4C.

Referring to statistics from a recent international survey by the independent think tank, Centre for Economic and Business Research, Williams says that 64.3% of Wales’ national income is accounted for by government expenditure. This means that out of every £3 in our pockets, nearly £2 comes from the public purse...

... In the programme, Williams traces the story of the Welsh economy back to before the oil crisis of 1973, to the days of Harold Macmillan’s “never had it so good” period in the 1950s and early 1960s. The economic crisis that followed was sparked by the oil-producing countries’ decision to double the price of oil and limit its supply – a situation which emphasised how domestic economies are dependent on international factors.

The Opec (Organisation of Petroleum Exporting Countries) decision led to inflation and public spending cutbacks in Wales and to strikes and closures in the heavy industries. Margaret Thatcher’s policy of creating a grants economy to ease the pain of the closures rather than deal with the underlying problems was never questioned in Wales, Williams maintains.

Even today, Williams says, the Welsh middle class has no incentive to question their country’s over-dependence on the public purse.
Read entire article at WalesOnline