Turning now to the questionof council housing by and large “1Thereason why council housing was established because private sector was unable toprovide affordable housing for lowincome households”. Housing welfare benefits require humongous amount of taxpayer’s money to up keep as government is determined to use up their resourcesto provide shelter. Housing boom in the previous decade have played a verypivotal role as the number of properties rented have risen significantly aswell the renters. The key drivers of this housing bill expected to rise evenfurther is due to government’s incapability to build additional council housingand major subsidy cuts has made it impossible for low income families to affordthe sky high rents. “2Onthe other hand we could argue that right to buy housing act introduced in 1980by Thatcher government” has been extremely debatable due to the fact that stateowned assets which appreciated in value were given away at very discounted pricesto low income families to develop their lifestyle which in the longer run wecan see has resulted in housing crisis and very inflated house prices resultingin vast shortages in the public sector. “3Consequentialismis an ethical theory that judges whether or not something is right by what itsconsequences are”. This claim supports the idea that many lower income familieswho are heavily dependent upon the housing welfare has been granted councilhousing in the posh areas of the country whereas the middle class cannot affordhousing at such some exclusive areas which sparks dispute whether lower incomefamilies should be granted those privileges at tax payers expense but on thecontrary this can also cause a major social misbalance due to a huge divide ofarea between the poor and rich. To illustrate this point David Ricardian’stheory of rent aims to prove this point as the demand and population of thecountry increases it’s not enough to meet the obligation of the growing demand.
As Ricardian proposes that its migrants will have to be settled on a differentland which in our case proposes that the increasing number of housing welfareindividuals could be allocated houses more efficiently accessible outsideLondon as that resolves the issue between the government’s affordability andprotect the lower income families from the ever rising London rents. Generally speaking, full employment is when everybodyis employed with a reasonable paying job. “4Asfor unemployed people claiming Job seekers allowance or universal credit, therewere 804,100 people claiming these benefits as of September 2017 and thisnumber has grown 3.3% in contrast to last year”.
Research has shown thatalthough the number has risen claiming benefits the current unemployment in theeconomy is one of the lowest in comparison to the past three decades. Thiscould be due to UK’s economy traditionally known as an ageing economy with alot of retirees being replaced by younger workforce to take over their jobs. Adamsmith believed value in use and value in exchange are essential element to fullemployment due to UK’s employment hitting record highs but the regular growthof pay has stagnated whilst the inflation has risen. The industries and theeconomy are gaining the same value from the workforce but value in exchangedoes not exist which makes the employees worse off making them demotivated towork and this can overall put the figures up claiming for job seekersallowances in the long run due to no incentive for the workers to be in fulltime employment. Pareto efficiency is interconnected to full employment asemployers are ought to share higher wages as part of the profits made by firmsto make the allocation better off by dividing the resources. Trade unionmembership in the UK has been on the decline due to changes in the corporatestructures and unions unable to adapt have lost most of its power but the majorbenefit it can provide they can help increase the wages for the employees bynegotiating a middle ground with the employers. Equal distribution of income and tax rates playa major role on the welfare reserves of a nation.
UK is one such country whohas high inequality in income. Inequality in income is raised by many factorssuch as disability, unemployment, academically weak and so forth. This unequaldistribution of income can cause major inequality due to the unaffordability bya section of people who cannot afford to buy goods and services which promptsthe government to mediate by providing them the basic necessities for theirsurvival. “5Householdsin the bottom 10% of the population have an average income of £9,644 whereasthe top 10% have net income almost nine times that £83,875” This evidencesuggests that inequality in income is wide spread which reflects in governmentspending over 30% of their income generation on welfare. Progressive Tax ratesare of paramount importance for the government as they can collect higheramount of income tax through high earners however one should also consider thatit will be extremely discouraging for individuals to work harder and createmore income. Adam Smith was a firm believer that inequality is not acceptablefor the further growth of economy infact he considered higher wages for theworkers and lower profits as even distribution was his goal. Moreover, wagesshould increase if there is wealth creation as he saw employers gaining thepower over employees by influencing law makers to pass regulations in theirfavour as wages were not simple as supply and demand. Karl Marx claimedinequality in income distribution supports the elite rather than the oppressedwho are being exploited amongst the social classes and not given their fair duefor the labor that’s been put in by them.
State Pension is the largestpaid welfare fund paid by the government as technology has upgraded and lifeexpectancy has gone up which means year on year the pension allocation fundwill keep on increasing but this is what the individuals have worked forthroughout their entire career. “6SteveWebb the pensions minister said that people earn their state income throughouttheir working lives by paying their national insurance contributions and feelstigmatized by the idea that they are claiming benefits” We might conclude thatstate pensions do take the lions share out of the welfare funds but they aredeserving of their efforts and contributions to the economy. While it isgenerally agreed that pensions are long term savings plan the government on onthe other hand has decided upon scrapping the pensions limit. “7ChancellorPhillip Hammond had proposed a cut to the annual pensions savings limit from£10,000 to £4,000 a year for those who have already made use of their pensionfreedoms”. This claim supports the idea that retirees would have to be cautiouswith their reduced allowances as this cut can weaken the certainty ofindividuals saving for their retirement. Moral absolutism applies to all theindividuals part of the state pension scheme as society has the phenomena foryears how important pension is to the future and managing it would requireputting it in a good tracker with diversified portfolio. Ethically investing into your pension pot takes grass root research to nurture it in a way for asecured for the forthcoming future.
The national debt of the UKis 8″£1.6trillion”. In order to reduce this deficit, we must take firm steps likeissuing bonds in to the economy to raise capital which would save us fromraising additional taxes but at some point in time the government will have toreturn the debt back to its lenders with added interest so it apply more thanone policy to gather as much momentum in the economy as possible. Loweringinterest rates would mean consumers will spend more on goods and services andbusinesses will tend to borrow additional machine to take on new projects. Thenational debt is an enormous number that government need to tackle head on orthe economy will need to borrow additional funds year on year without nevergiving itself an opportunity to see its treasuries in surplus.
“9TheresaMay is ready to turn UK into a low tax low regulation haven after Brexit”. Thisevidence suggests that customs and duty in the country will become extremelyexpensive pushing the living standards high but observing the current scenariowith wages stagnated this might make it a terrible move as the citizens wouldsuffer indirectly and in response the welfare funds will absolutely sky rocket andmight cripple the already distressed economy. This argument does not take in toaccount that firm’s registration fees plus thousands of off shore companies wantingto be domiciled in the UK could mean billions of added revenue in the economywhich can be injected back to improve the current state the welfare is in. Itis worth stating at this point is that the UK will only go forward with theirdecision if the EU declines them single market access as there’s a deep ethicaldilemma in regards to which party is going to gain the edge or they manage tocome up with an amicable solution to it. Currently the UK gives out 10″£13billion” annually in foreign aid which is the highest by any country and itestimated that this figure might increase by the year 2020. There is an outcryby the general public that tax payer’s money should be used sensibly by thegovernment to better our resources such as injecting this money in to NHS orsocial care. India is one of the countries where UK sends its aid every yearand this what its Finance minister had to say “11Wedo not require the aid.
It is a peanut in our total development expenditure” Thisstatement reflects that not every country we give foreign aid to require it andthus we should be restrained when wasting our valuable resources and using itwhere they are strictly needed.UK followed an altruistic path by helping lesseconomic developed countries to improve their economic structure and help dealwith problems such as poverty, corruption and inequality. From the arguments presentedin the essay one might conclude that state’s first priority should be thenational health service which is in dire straits at the moment due to lack offunding which is of paramount importance as people’s lives are at risk. Secondlythere should be a change in legislation for council housing to be transferredoutside London while the government should sell all the council estates whichit owns in prime locations and elsewhere to the private sector and free upbillions of pounds to be used constructively for the development of welfaresystem. Lastly the government should take initiative to bridge the gap betweenthe equal distribution in income by have its own talent wing to haveindividuals specialise in skills in different sectors where there is moredemand for jobs but less supply as this can make a difference not immediatelybut surely in the long run of the economy. Word count24931https://fet.uwe.ac.uk/conweb/house_ages/council_housing/print.htm2http://www.politics.co.uk/reference/right-to-buy3http://ethicsunwrapped.utexas.edu/glossary/consequentialism4https://visual.ons.gov.uk/welfare-spending/5https://www.equalitytrust.org.uk/scale-economic-inequality-uk6http://www.telegraph.co.uk/finance/personalfinance/pensions/11194265/State-pension-is-not-a-benefit-says-minister.html7http://www.telegraph.co.uk/pensions-retirement/news/governmentgoes-ahead-pension-tax-relief-cut-over-55s/8http://www.telegraph.co.uk/business/2016/02/19/how-large-is-the-uks-national-debt-and-why-does-it-matter/9http://uk.businessinsider.com/theresa-may-stands-ready-to-turn-britain-into-a-tax-haven-after-brexit-2017-110https://www.express.co.uk/news/politics/790740/UK-spends-more-than-three-times-foreign-aid-than-rest-of-world11http://www.telegraph.co.uk/news/worldnews/asia/india/9061844/India-tells-Britain-We-dont-want-your-aid.html