Sadly, that has nothing to do with the economy, it's a fundamental Tory belief that the poor must be made to suffer for their sins so the rich can feel even better about themselves.
A kindly benefactor could pay off the entire deficit tomorrow, (Amazon or Google perhaps?) and it wouldn't make the slightest bit of difference to Tory policy. This is absolutely nothing to do with economics. Its pure politics. Always has been! Since they got in, they've been carrying out a ready-prepared agenda. The systematic dismantling of the welfare state, and the abolition of socialist heresy like the NHS.
The fact that its destroying any hopes of an economic recovery in the process, is neither here or there to these zealots! As neither themselves nor their rich, tax-dodging fiends will be effected anyway. Their Turbo- Thatcherite ideology, no matter how bankrupt and discredited, trumps everything! Especially evidence!
julianwilson - I couldn't believe he'd had the nerve to trot that one out again. We've not heard it for a while. A bit like the Big Society