The Government spends £185 billion a year in Social Services and Direct benefit payments, representing nearly a third of all Government expenditure. To put this in perspective - it is more than defence, Law and order, education and housing combined. Only health comes close to benefits as a drain on the exchequer. Obviously this third does not include the benefits administered by local Government, such as housing benefit. It is this massive chunk of money which needs to be shrunk, if there is to be any shrinking of the size of the state. If you have ever voted Labour, you may think that this is taking money off the poorest in society. It is, but the sheer poverty welfare dependency causes, in the long run, you're doing them a favour. When people realise just how much of the tax they pay is going to the estates on the edge of town, those hearts of darkness, those ghettoes populated by people who have been encouraged into long-term worklessness, politicians will be willing to accept the challenge of ending the corrosive effect of paying people not to work. It is the welfare state which has spawned two generations of people who know nothing of honest work, and everything about their "Rights".
Capitalism, as every Marxist bore will tell you, needs unemployment. Yet any economist will tell you this need not be unjust. 5% is roughly the structural rate at which the Labour market is efficient, yet uninflationary. 5% is roughly the claimant count - those actively seeking work. If you think about it, 5% is you enduring two six month periods on the dole in 20 years of work. What capitalism does not need however is a rump of 10% consisting of "economically inactive" people, most of whom, frankly, are taking the piss and are described in the statistics as "discouraged workers". This is required by politicians who wish to claim that the unemployment rate is lower than it actually is.
There is an excellent post at 'Burning our Money'
We on the right believe that the world is a better place if individuals - or more specifically families - take responsibility for themselves... From the economy, to education, to health, to welfare, the right believes when governments get involved beyond law and war, the long-term consequences are almost always dire.
The left believes the exact opposite. They believe the world is better if planned and managed by a benevolent dictator who goes by the name of "Society". For the left, the apparent randomness of markets is the law of the jungle, and individual differences in talent and interest a monstrous inequity....
But it's not the monstrous burden of the left's vision of "society" on the hard pressed tax-payer which so offends, but the effects that money has on its recipients. The left will not, cannot accept that it is the welfare state's perverse incentives (most notoriously the massive incentive to have children in order to get a council house) rather than lack of money and opportunity, which are at the root of the hellish, crime ridden estates ruining whole areas of towns. The idea that welfare payments subsidise crime, by leaving young men with nothing else to do, is repugnant. Repugnant, but true. The opposing, rather optimistic idea that people will work even though they could get the same money 'on the social' seems remarkably common on the left. It is common, but false. And it is this false premise, underlying everything the left does which is at the root of the social breakdown at the margins of society.
The left blame rampant individualism (and specifically Thatcherism) leading to an atomised society for recent increases in violent crime. I blame the welfare state for removing the middle classes obligations to those less fortunate. For socialism demands that, when you see poverty, you have to do nothing about it, for your obligation is already discharged when you send your Tax cheque (and today is tax bill day) - the thousands the tax man is getting from me does not in any way make me feel warm and fuzzy. Does it you?
By making charity the state's function, you see to it that delivery of welfare is expansive, bureaucratic and replete with perverse incentives. Who are the women least likely to be able to bring up a child alone? The young and poor. To whom is a home, independence and an income should they become pregnant promised? The young and poor! Without fathers, with uneducated mothers, and no culture of work beyond the most casual, it is no wonder generations have been brought up with no respect for themselves or the rest of society. Then there are the smack heads whose free methadone keeps them addicted, and the just plain lazy for whom work is popping off to the doctor to get his "bad back" signed off. And inevitable the result is a feral feckless self-spawning underclass of useless people, whose despair and ennui is inflicted on the rest of us.
It's time for tough love. Remove the welfare teat and by doing so force the long term unemployed - discouraged workers - back into the Labour market into work by creating the incentive - work or starve. You'll be amazed how quickly people rediscover their initiative and work ethic when forced to do so. Work or become homeless or, if all else fails, find a charity prepared to support you. There will be plenty set up by the out-of-work social workers who are convinced that they are all that stands between us and armageddon. Remove the option of a lifetime on benefits, and bring back the work ethic. Without the subsidy to hang around, threatening people, the crime rate (actual not statistical) will be reduced. What's more people in jobs tend to both be, and look less threatening, thereby reducing the fear of crime.
The minimum wage too is part of the problem. By raising the bar, the unskilled are simply uneconomic to employ. It makes more sense for a business to buy a machine. Without unskilled labour, the habit of work, and the possibility of the long term unemployed people ever getting out of the welfare trap and into better paid, skilled work, vanishes. So the minimum wage needs to be abolished or seriously reduced to levels found in comparable countries. We have the highest minimum wage in the world -
more than that in the richest country in the world, Luxembourg. Those paragons of Lefty virtue, the Nordics have no minima, and we're 60% more than the Canadian minimum. No wonder our illiterate chavs cannot get on the job ladder. They aren't worth what business is being asked to pay them; so our delightful government shovels them onto a scrap heap marked "discouraged workers".
At the margins, business cuts costs by paying immigrants who are cheaper illegally or legally. And the people who suffer most from this immigration are the poor whose jobs and prospects vanish. Why employ a semi literate Englishman when you can get a polish labourer who works harder for less?
Finally, you need to make work pay and remove the disincentive to work. At the moment the state taxes the low paid, swills the money round half a million Bureaucrats then asks them to beg for some of their cash back. As well as being disgustingly wasteful, this creates marginal tax rates for the low paid which can in extreme circumstances approach 90%. This isn't acceptable to my mind - it's revolting in fact.
Before the welfare state, income tax affected just 20% of salaries. The average working man just did not have to think about the tax man. Now, with the welfare state, a fifth of even the checkout girl at Sainsbury's salary goes to Darling's
Labour re-election slush tax fund. Worse, with PAYE, no-one questions it. As tax is painless, so it has grown - the state grasping ever more from its poorest citizens through the dishonest process of tax-creep - failing to keep thresholds growing along with wages. Surely you want the Low-Paid to keep the fruit of their extra labours? This would be most easily achieved by taking millions of the lowest paid out of the tax system in its entirety. Raise the threshold to £10,000 or £15,000 - give tax cuts in the future by raising that threshold further and pay for it by slashing benefits to those out of work. That targets the benefits of tax cuts at the working poor far better than the bureaucratic nightmare of tax credits. Why don't they ever take this step? Could it be they are motivated by spite against the 'middle class' rather than the noble motives they claim for themselves?
I'd never suggest that. It is if fact worse. They would rather the poor be grateful for the mean crusts thrown to them by socialists than ever stand on their own two feet.
Socialists desire power over their fellow man, and the independent-minded middle class are too strong for them. So they do what every inadequate bully does. They pick on the weakest. Socialism: an Evil creed. Thank God it's dying and we need to sweep the detritus it left away. In its place we need to build a society of independent people with a stake in society, not state supplicants begging for small change. The first step is simplifying, reducing and curtailing the reach of the benefits system. It was intended to be a safety net for the poor. Instead it has become a trap set by the bureaucrats who wish merely to extend their little empires. The welfare state like everything else the state does, is not immune from producer capture.