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| Firstly an introduction MUSINGS OTHER PEOPLE'S ESSAYS |
A new Welfare State
-or-
A serious idea that came to me one Monday (29/12/97)
Author's note: I would like to thank Sonny for his valuable input, and for the fantastic day we had at Marwell Zoo. Although I think that was another time.
There are two sections to the welfare state - one is to ensure that everyone has a minumum standard of living, the other is more compassionate and ensures that when a person falls on bad times their standard of living is maintained.
It should be avoided though that people (i) choosing not to work (ie pay tax) because they do not reap enough benefit from doing so, or (ii) defraud the system.
This new simple, elegant and revolutionary systems converts welfare benefit into welfare right and entitlement, and is a self-adjusting system which will automatically keep in check fraud and change itself to best suit society.
It has two components.
The first is an across the board coupon scheme which provides everyone with the necessities of life.
Everyone in the country (perhaps this could be done electronically with identity cards?) regardless of age or wealth is provided with coupons of monetary value redeemable only for the goods for which they are provided.
For example they would be coupons for food, milk, education, health products and a monetary basic allowance for luxuries such as televisions, cigarettes and the like. They have no lifespan to encourage saving (or perhaps a limited lifespan to prevent hoarding and swapping?).
They are not redeemable for anything other than that class of goods for which they are given, or as tax credits with the Inland Revenue, at face value.
These coupons can be used in two major locations: one is the standard High Street shop, although this is not encouraged because their face value is not sufficient to get enough food, etc.
The other is a State-run (or in public-private partnership) grocery store. All goods are sold at minimum possible price and there are different stores that compete for custom (a Government subsidy is given). These central locations are put in every community and if possible run by shopkeepers already in the area.
The central location also becomes the home for other items necessary for complete social inclusion - and expanded and empowered CAB, ISA suppliers, information servers, job-centres.
The beauty of this system is that a job or any form of extra money means that you can immediately step up and start buying extra luxuries - although for the complete step up you can cash in your coupons... which you can only do when you're paying tax.
So far this new welfare state only provides a starting block for the citizen. The other section is another entitlement - Personal Insurance.
The welfare state is something that you use, like a utility. To this end a small number (perhaps a dozen) Personal Insurance Companies are set up - again in a similar kind of public-private partnership using the expertise of the current insurance sector. It is mandatory from birth to contribute to a scheme - of course you only need to do this when you come off vouchers. It is impossible to have a standard of living worse than that which you have with vouchers because the safety net will catch you.
These companies are essentially insurance companies providing the same service that the Social Security system currently provides.
The dynamism of the free-market system means that these companies will adapt themselves and go after different parts of the market place - some after people contributing lots, some after people contributing a little. The free-market profiteering attitude also ensures that fraud will be kept to a minimum because there is a direct advantage to the company to minimise fraud, and on the side of the consumer this same mechanism keeps all the companies acting fairly - something the media are sure to enforce - because people won't sign up with unfair companies.
This two-part system on a basic and understandable level pushes for full Social Inclusion, while on a higher level automatically keeps discourages fraud and anti-social behaviour to support people at their accustomed standard of living.
Hard work is rewarding, and a comfortable life is a right.