State Dependency

The PommyG does some calculations and finds that some 47% of the electorate are dependent upon the State, either for work or for handouts.

How, therefore, can anyone successfully campaign for a reduction in the State?

Only one way: move to make 100% of the population dependent upon the State, but in a much less intrusive manner, with fewer contrary incentives.

Yes, a citizen’s basic income.

4 responses

  1. MarkS Avatar
    MarkS

    The expansion of the state and provision of recruits to Blair’s turkey army has been the biggest case of gerrymandering ever perpetrated on a supposedly democratic state. Now 47% of the population has enslaved 53%. That’s not democracy any longer, is it?
    Citizen’s Income! They can’t even get tax credits right and the government won’t look at flat taxes so what’s the chance of them doing anything radical like a Citizen’s Income? Nice idea… but no public sector cigar, Tim.

  2. Matthew Avatar
    Matthew

    I have two problems with his calculation. First, the vast majority of the 6.8m people (and I’m not sure where that comes from, as it also says 5.8m) who work for the state clearly would have other options if the state ceased to exist – you might argue that they would be worse options, but I don’t think that makes them ‘dependent’ in the way it is being used here.
    Second, and workign the other way, he’s actually talking about ‘entirely dependent’, so a CBI wouldn’t be 100% but (I would imagine, and assuming no employment loss) a similar figure to 47%. But you don’t say in your post why this is acceptable and the other isn’t, if it is dependency per se that concerns you.
    Tim adds: My worry about dependency is upon the incentives that then result. By changing the welfare state from a payment if you do not work, to one you get whether you work or not, for example, increases the incentives to work and reduces them not to.

  3. Kay Tie Avatar
    Kay Tie

    “Yes, a citizen’s basic income.”
    Come on, let’s play the neo-communists at their own game. Get what we want by wrapping it in green cloth.
    Create a new currency, Carbs, charge industry a tax, payable in Carbs, on the CO2 emitted at a rate of 1 Carb per kg/CO2, and issue an equal amount of Carbs to everyone for free.
    The Carbs will float against the pound, industry being the buyers. The value of the Carb will rise over time (since fewer are issued) and we will all get free money from the Government. The Government wires it to your bank account, or issues a cheque. Your bank converts it to £s when the money goes in (like if you are paid in $ or €), or you can open a Carb account.
    A citizens basic income, except it’s, like, green, innit.

  4. Matt
    Answered your question over at my blog. Im assuming you’re the same Matt that posted at my blog?
    Also a CBI is a good solution. I like the fact that it incentivises people to work and that it reduces the nightmare of high marginal tax rates.
    The LDP in Australia have proposed a similar policy based on CBIs caled 30/30. You might be interested in reading about it.
    Here.

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