Monday 6 December 2010

In Defense of Welfare

Last week I made some mention of Disraeli and his constitutional reforms that enfranchised hundreds of thousands of people. His great rival had been Gladstone, a staunch 'Classic' Liberal. Following the era of Disraeli & Gladstone's rivalry there was a shift away from 'Classic' towards a 'Progressive' Liberalism.

The dichotomy between Disraeli's policies of enfranchisement and Gladstone's freedom through a free market in many ways could be seen to have produced this progressive shift, paving the way for Asquith & Lloyd George's more moderate and proactive government. You see the struggle between the two rivals that led Disraeli's Conservatives to push through constituency reforms, generated a newly powerful working class voting block. This new voice had gotten a taste for reform and the progressives where quick to push their legislative agenda.

The gem in the progressive crown was the Liberal Welfare Reforms. Through the combination of a policy program and budget, the Liberal government brought about a complete shift in the British approach to poverty and responsible government.

My concern is that 'Workfare' is missing the point of a century's worth of scientific research. It seems be attempting to reverse the progressive shift, favouring instead the idealistic traditionalism that the Tories have been criticised for in other policy areas. (Teacher Talks, 2010).

The crucial point they are missing is that money is not the motivator they think it is. This has been shown time and again by the studies of institutions such as Stanford and MIT. Professor Ariely discusses the merit of money motivation here (Ariely, 2009).

It strikes me then as an ideological attempt to enforce unrestricted competition that favours those that start with means, the strongest and the most imposing. It also risks a return to the 'poor laws' and utterly unethical 'workhouses' of old for those who cannot keep up.

This should not be taken to mean that competition is evil. But rather that unregulated competition leads to destructive, ruinous and counter-productive mentalities that put the market at as much risk as it does society.

Welfare can be a great leveller. It demands that no one gets left behind. It demands that those who are born into privilege are not able to exploit those unfair advantages at the expense of those who were not so fortunate in their economic background. It demands that the privileged and not so alike begin from a level playing field, to all have a fair chance.

But welfare is more than that. As it enfranchises those without, it enriches those with, by creating the fair competition that those so enamoured of the market tell us is the key to getting the best from people.

The Deputy Prime Minister Mr Clegg has been trying to provide a counterpoint to Mr Duncan Smith's presentation of Welfare Reform (Clegg, 2010), trying to convince us that this is what the Coalition policy will achieve. The Tory minister has advertised this reform to voters as a means to curtail abuse of Welfare, through harsher penalties and stricter terms. The Liberal Democrat leader on the other hand has been trying to push it as a 'work positive' approach.

But the more Mr Clegg tries to make us see these reforms as 'making work pay', the more I cannot help but see it as a thinly veiled acceptance of a policy of 'work because you have no other choice'. It is motivation less in the form of 'follow this carrot to freedom' and more 'chase this carrot or we'll beat you with this stick'.

The Liberals are doing all they can to honour the responsibilities of being in government, a coalition government no less; dealing with the compromises of everyday politics. But it is a difficult tightrope walk to balance duty & conscience.

That conscience is well summed up by David Lloyd George, on presenting his budget to fund the Liberal Welfare Reforms:
“This is a war Budget. It is for raising money to wage implacable warfare against poverty and squalidness. I cannot help hoping and believing that before this generation has passed away, we shall have advanced a great step towards that good time, when poverty, and the wretchedness and human degradation which always follows in its camp, will be as remote to the people of this country as the wolves which once infested its forests".
It is well worth watching this video if you want to learn more about the science of motivation.

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References:
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+ The Coalition Welfare Reforms:
21st Century Welfare, Forward by the Secretary of State
Unemployed told: do four weeks of unpaid work or lose your benefits
Long-term jobless 'could face compulsory manual labour'
The existing New Deal scheme already includes four weeks labour

+ Teacher Talks' 'Gove scraps a rule that doesn’t exist';

+ Dan Ariely's 'The Trouble with Cold Hard Cash'; Technology Review, 2009.

+ Nick Clegg's 'Poverty plus a pound isn't enough';

http://en.wikipedia.org/wiki/Liberal_welfare_reforms

+ Dan Pink's 'Drive: The surprising truth about what motivates us'; RSA Animate, 2010.

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