Friday, 2 March 2007
2 One in three are dependent on the state for at least half their income
I think this is a dramatic statistic: its not 1/3 of the population qualify for a benefits top-up, but 1 in 3 are dependent on the state for at least half their income. Quoting a report from the think-tank Civitas, this Telegraph article discusses how this represents a major social change over the past 40 years and is particularly relevant to discussions about single-parent incomes. http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/02/12/nwelfare12.xml It does indeed raise questions of poverty traps and disincentives, but is the example of USA style welfare reform the only way forward?
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No I don't think we need to look to America. People always talk as if there are only two options - the US or old-style Europe (France mainly). But each country needs to find its own solution, maybe mix and matching good ideas. Denmark is a great example of a country which seems to combine elements from the American and French approaches to employment. They have a flexible workforce with low unemployment but also give very generous benefits to job seekers. The catch is that there are tough screening measures to make sure people really can't get a job first. Here's an article about it: http://news.bbc.co.uk/1/hi/world/europe/4849694.stm
Agreed, the US model is certainly not the only model and, speaking as an American, I find it an absolutely scandalous system for low skilled low paid workers, who are often forced to travel substantial distances to work multiple shifts at minimum wage in order to survive, with little safety net. And still, the percentage of children living in povery in the US is higher than in in Mexico.
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