The Paradise Papers, austerity and the privatisation of wealth, human rights and democracy

Politics and Insights

351-burden-cuts-by-populationOutdated Conservative ideology has long framed the social safety net as an obstacle to national prosperity, they claim that welfare somehow depresses economic growth and job creation. Indeed, Conservative efforts to dismantle the welfare state have been a constant in UK national politics. However, the truth is that as income inequality increases, the potential for economic growth is constrained. Seven years of austerity aimed at the poorest citizens have provided empirical evidence that does not verify the government’s claims.

The Conservatives also claim that welfare creates “perverse incentives” and “moral hazards” – it produces negative “unintended consequences,” as people who are eligible for support don’t have a job. Welfare is therefore reduced to ensure that people are not comfortable in claiming financial support, in order to “make work pay”. The problem with that, however, is that many people who work are also struggling to make ends meet. Work doesn’t pay because…

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