If you need urgent support, call 999 or go to your nearest A&E. To contact our Crisis Messenger (open 24/7) text THEMIX to 85258.
Options
A better way of doing benefits
Former Member
Posts: 1,876,323 The Mix Honorary Guru
So there's been a lot in the press about benefits and I know some of you must be feeling pretty crummy. But I want you to know that there are lots of people not in receipt of any benefit that still think you should be looked after.
I think part of the problem politically is the system is convoluted. It makes the system adversarial - so claimants need to 'prove' they need benefits, administrators need to 'prove' they don't need benefits.
I would strongly advocate moving to a system of basic income:
http://en.wikipedia.org/wiki/Basic_income
Features:
- everyone receives it
- if you earn, you don't lose any of it
- it's a basic guarantee that you receive a certain amount that you can get by on
Benefits:
- because its universal, it's an institution like the NHS or the police. People like institutions more than 'handouts'.
- more economically efficient according to utility theory
- more efficient in terms of cost to administer
- removes stigma from receiving benefits
- gives freedom to do any work, even if its just making daisychains and selling on eBay. The current welfare system distorts things massively (e.g. look at rental inflation owing to housing benefit)
Obviously we can't really affect the political system in this country. But it's nice to dream of a better way.
I think part of the problem politically is the system is convoluted. It makes the system adversarial - so claimants need to 'prove' they need benefits, administrators need to 'prove' they don't need benefits.
I would strongly advocate moving to a system of basic income:
http://en.wikipedia.org/wiki/Basic_income
Features:
- everyone receives it
- if you earn, you don't lose any of it
- it's a basic guarantee that you receive a certain amount that you can get by on
Benefits:
- because its universal, it's an institution like the NHS or the police. People like institutions more than 'handouts'.
- more economically efficient according to utility theory
- more efficient in terms of cost to administer
- removes stigma from receiving benefits
- gives freedom to do any work, even if its just making daisychains and selling on eBay. The current welfare system distorts things massively (e.g. look at rental inflation owing to housing benefit)
Obviously we can't really affect the political system in this country. But it's nice to dream of a better way.
0
Comments
It's going to cost a lot to give everyone a basic income. And where would the money come from?
Why does someone on £100k need free NHS care? They don't. How do we pay for the NHS? Through taxation. And it works out as much cheaper than private healthcare (we spend less per capita than the americans) simply because it can be administered efficiently.
We would instantly wipe out the cost of 90% of the budget of JSA, ATOS, etc. etc. etc. which isn't 'useful' economic activity.
You still haven't explained why someone on £100k per year needs benefits. They don't.
Great idea, will never happen.
There are two main problems with your idea though. Firstly, it means that anyone can simply choose not to work. Not a great idea, especially since companies will reduce salaries knowing that people are already getting paid a living wage, meaning that the benefits of going to work over sitting at home aren't actually that great. And secondly, it would require massive taxes, which in theory wouldn't be a huge problem, because companies would be saving the first £15k or so of every salary they currently pay. But it would rely on companies actually paying their taxes, which as we know, they're generally reluctant to do.