April 2, 2003

PLEASE RELEASE ME:

One deal to allow Britain to grow old gracefully (James Purnell, April 1 2003, Financial Times)
Europe is ageing. Our birth rate is falling below the levels needed to balance deaths. Fewer working-age adults will be left to pay for the growing costs of pensions and long-term care. One solution is immigration. Another is to increase the proportion of adults who work.

We need fundamental reform of the welfare state to achieve that goal. We need to help parents, mothers in particular, to combine work and family. We need to invest much more in small children. We need to require everyone who can work to consider doing so. [...]

The new welfare state must...aim to make women truly equal at work. In the 1970s, countries such as Denmark and Sweden decided to meet the problem of an ageing population by helping more women to work. By reducing child poverty, offering generous paid parental leave and attacking discrimination, they raised the proportion of women in work from 58 per cent then to 72 per cent now. The government has introduced longer and better-paid leave for parents but we need to do more to match up to the success of Scandinavian countries. [...]

The New Deals should be rationalised into a single programme - a Single Deal, open to all claimants under the poverty line. Job advisers should be able to design programmes around the needs of the individual. We should investigate the experience of Wisconsin, which guarantees a wage-paying transitional job as an alternative to benefits. In return, job advisers could then be given the power, in exceptional circumstances, to apply a benefits sanction to any claimant who could work but persistently refused to do so.

Different benefit conditions could still apply to different workers. A young man would be treated differently from, say, a single mother with children under school age. But with 1m of those on incapacity benefit saying they want to work, and most single mothers saying the same, there is real potential for reducing poverty and increasing the working population.

Combined with universal childcare and equality at work, Europe might even be able to age gracefully without relying just on immigration.


This is just sad. What she's essentially suggesting is that England euthanize itself. Obviously moving more people, especially women, into the workforce will reduce the already suicidal birthrates, though it will enable the elderly do die more comfortably--at least for awhile--as these young workers fund the retirements of the older, larger generations.

When you read something like this, which implicitly accepts as an impossibility the idea of increasing birthrates, you almost have to conclude that Europe has reached the point predicted by Albert Jay Nock:

Burke touches [the] matter of patriotism with a searching phrase. 'For us to love our country,' he said, 'our country ought to be lovely.' I have sometimes thought that here may be the rock on which Western civilization will finally shatter itself. Economism can build a society which is rich, prosperous, powerful, even one which has a reasonably wide diffusion of material well-being. It can not build one which is lovely, one which has savour and depth, and which exercises the irresistible attraction that loveliness wields. Perhaps by the time economism has run its course the society it has built may be tired of itself, bored by its own hideousness, and may despairingly consent to annihilation, aware that it is too ugly to be let live any longer.

Posted by Orrin Judd at April 2, 2003 10:51 AM
Comments

One of the great purposes of the United States is to set an example for the rest of the world: "see, it is possible and here's how." But what do we do when the rest of the world pays no attention?



The only solution the left has to the palpable failure of the welfare state is a larger, more generous welfare state. Welfare reform in the US shows that it is at least possible (I would argue probable) that everyone benefits when benefits are pared and recipients are given the only realistic motivation to leave the dole we have yet discovered.

Posted by: David Cohen at April 2, 2003 11:37 AM

And, of course, if you remove the dole then folks have to fall back on family, friends, neighbors, churches, as a safety net--thereby reknitting a frayed society and incentivizing fertility.

Posted by: oj at April 2, 2003 11:54 AM

Has anyone considered lowering the burden of taxation on young families?



Think of the two-earner families who could become one-earner families. Then, more attention could be paid to the children. Radical idea, non?

Posted by: John J. Coupal at April 2, 2003 12:06 PM

If Europe could do that, John, they wouldn't be in this position to begin with.



The governments offer generous welfare/unemployment/medical/retirement benefits. To pay for this, they have to raise taxes. Raising taxes makes work that much less rewarding compared to the generous benefits for not working. More people stop working, costing the government more money. Rinse and repeat.

Posted by: David Cohen at April 2, 2003 1:12 PM

Just when I'm getting ready to write you off for the Nth time, OJ, you pull out a great post like this one. As far as I can tell, you're the only person keeping a serious eye on the European demographic crisis, even though this is clearly the Next Big Thing in world affairs.

Posted by: Charlie Murtaugh at April 2, 2003 2:13 PM

As OJ pointed out, I am struck by the article's total disregard of one possible solution: that of expanding the population. Get the proles to work harder to support our benefits, eh? Somewhere I read of a link between socialism and a death cult mentality- this article really puts a neon sign around it. As long as we are comfy, why, that is all that matters. Disgraceful.

Posted by: Bruce Cleaver at April 2, 2003 4:14 PM

Moving more women into the workforce, or increasing retirement age, will provide (only) temporary relief.



I wonder to what extent increased life expectancy, and the possibility of women bearing children late into their fourties, will effectively decrease the cost of childrearing and encourage higher birth rates?

Posted by: mike earl at April 2, 2003 4:39 PM

Yes, this article is so sad. They just can't seem to get their minds around the idea of *not* giving people welfare. Their "solution" to getting more people to work is to *pay* them to work (paid-for child care, expanded leave, etc.)



Seems to self-evident --- Let's pay people to work so that we can tax them so that we can pay them....... It never enters their minds to just STOP taxing people.

Posted by: ray at April 2, 2003 11:02 PM
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