Saturday, April 13, 2013

Discussion about welfare in UK

It seemed that Mr. David Cameron caused discussion about welfare in the UK.

Cameron: Welfare Reforms 'Put Fairness Back'

Prime Minister said that it was not fair for claimants to be given more benefit than usual workers. He also commented that some people selected social welfare as a lifestyle.

His statement has a backbone. In UK, Mr. Mick Philpott committed arson in 2012, resulted in the death of his children. He was given welfare, not working. Mr. George Osborne said in parliament that this case caused a question as a government and taxpayers.

Mick Philpott's benefits 'lifestyle' should be questioned, says Osborne

His statement was severely criticized by the Labor Party. Mr. Ed Balls, so called shadow chancellor, claimed in his blog that linking the problem of welfare to such a shocking case was a nasty behavior.

As Prime Minister, Mr. Cameron seemed to want to carry out the reform of the welfare system. So he supported the statement of Mr. Osborne.

This situation is so similar to that in Japan. I introduced an episode in a past entry that some people blamed a popular entertainer whose mother was given welfare.

It is also often happened introduced a case of claimant given great care. Some people say that it is ridiculous that those persons gain much money than workers.

Is it rational discussion?

As a libertarian, I think that social welfare should be minimized. Excessive care can get rid of the incentive to work.
However, we also should be careful to analyze the current situation. To compare the amount of welfare simply to our own lifestyle is not appropriate. One of the reasons is that claimants cost more expenditure than workers, for lack of social capitals. Especially in Japan, all properties, including lands and cars, should be disposed of before getting welfare. So it is difficult for claimants to begin a new business if he wants to.

It is also possible that cutting off welfare will increase crimes, as I mentioned, contrary to the discussion about the case of Mr. Mick Philpott.

Maximizing incomes individually results in maximizing total happiness, as Mr. Adam Smith. On the other hand, blaming others who are given more benefit than us without making an effort is not a behavior to maximizing our happiness, but makes us poorer in mind.

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