Basic Allowance for All

With ever increasing productivity we should be heading for a future in which we all work less. However there are many problems with current tax and welfare systems. These problems have a tendency to spread the benefits of productivity gains very unevenly with some working longer and longer hours while others work no hours or less than the hours that they want to work.

While minimum wages may protect workers from exploitation, they also act as a barrier to the creation of extra jobs. In addition means tested welfare systems tend to cause poverty traps and are highly punitive, blaming the victims of changing labour markets for their plight.

A fairer system would give everyone a basic allowance whether they "deserved" it (a nineteenth century concept), or not. Such a scheme could be funded by replacing all basic welfare payments and a corresponding reduction in wages that would instead be payed to the Government in some form of tax.

If you are interested in the above, or have comments on it, please email me.

Michael Baker,
November 2000

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mbaker@pobox.com

Last updated 8 November 2000