Reduced welfare integrity

A recent survey by The Melbourne Institute of Applied Economic and Social Research’s Household, Income and Labour Dynamics in Australia (HILDA) has revealed a decrease in welfare dependency by working age people. The annually survey of 17,000 people has recorded a decrease in weekly welfare payments from 23% in 2001 to a current 18.6%. [1]

This is more information that supports what many including the IMF have stated, that equal access to health and education enables populations to not only move off welfare but to contribute to a more stable society and increase economic prosperity.[2]

The bottom line is that people will do well if they can and this is proved time and again. A society can be a prison where it continually disables its population and then blames them for it, or it can be a liberation where each individual can achieve self-determination and escape welfare and poverty and the handing down of poverty to their own children.

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Hockey and the unsophisticated argument

Joe Hockey, as I heard on the radio recently, is claiming that his recent ‘horror’ budget is fair because each Australian works one month a year to pay for welfare. Interestingly, he is not revealing how many weeks a person works to cover generous far-reaching tax concessions which significantly benefit the wealthy. Greg Jericho of The Guardian recently wrote that ‘billions of dollars in revenue … is forgone each year due to exemptions within the taxation system’.  He also relays that a recent IMF assessment of the failing Italian economy led to the IMF’s concern of the misuse by government of tax concessions that were vulnerable to lobbying. Jericho wrote that ‘the IMF working paper displayed that Australia actually has a greater amount of tax expenditures per GDP than Italy or many other advanced economies’. [1]

tax expenditure

Consequently, Hockey’s media grab reveals explicitly that his approach is a one-dimensional simplistic assessment, emotive and seeking to blame disadvantaged people for their situation. Like one friend recently made note, ‘rich people tell the middle class to blame the poor’.

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