Private charity, voluntary co-operation or state welfare

One of the most common points of disagreement between, let's call them "state-interventionists" and "non-interventionists", is the claim that "non-interventionism" would leave the poorest in society on the scrap heap with no welfare, no support. That the much vaunted idea of "non-interventionists" that "private charity" or "voluntary co-operation" would take the place of state welfare is just an impossible pipe dream. So determinedly do "state-interventionists" believe their own claims that they frequently castigate "non-interventionists" as heartless uncaring selfish individualists who would rather see others die than pay taxes. One quote from a Lib Dem Voice "discussion" just today will give you the general idea:
"Well none of them [Libertarians] are serious, because it an incoherent philosophy....send the kids back down the mines, it’s only a lifestyle choice."
And to an extent, I used to believe that propaganda. As a geo-libertarian of course I do have an answer of sorts - the basic income derived from land user fees (which would on their own create an almost unimaginably more equitable society in any case) would cover the basics of life for everyone, and give everyone an incentive to top it up with as much or as little work as they can manage.
But a recent discussion on a "non-interventionist" mailing list I've been frequenting recently has challenged the basic assumption of this debate for me. Would people really not contribute voluntarily to the upkeep of others if you don't have a government apparatus threatening them with the confiscation of their property and ultimately the loss of their freedom unless they pay their taxes?
It is a strange proposition. Governments for at least the last sixty years have been supporters at some level or another of some form of state welfare. They may argue about how much is appropriate but the fact is, people have overwhelmingly voted for a state that takes money from you in order to give some of what's yours to someone deemed "less fortunate". We even have a cliche about the inevitability of death, and taxes.
We have tens, maybe hundreds of thousands of people who do voluntarily give up their time to care for another. Most people are someone's relative, someone's friend, someone's colleague. And whilst I recognize that some do not have such support networks and would still require some form of collective support, most people do not want to see their friends and relatives on skid row or worse.
One has to wonder whether the interventionist route actually makes things worse. And in how many ways. When we look at our pay packets do we not think often that we've given quite enough for the support of others through our taxes thank you very much. National Insurance and Income Tax between them effectively make the worker near forty per cent worse off. I know what I would do with an extra forty per cent each month. It would pay the interest bill on the piece of land we have just acquired for our first Community Land Trust for a start.
Other taxes and protectionist policies keep the prices we pay for basics artificially high and create incentives for companies to produce cash cows rather than exciting developments. I'll bet if we didn't guarantee one pharmaceutical company a contract for however many millions of doses of Metformin diabetes pills every year a dozen others would have put the effort in to find a cure, not a chronic treatment regime.
The attempt to do welfare as a "universal" system, with the same rules for everyone, means a bloated bureaucracy enforcing inflexible regulations. If welfare were, say, to be dealt with at the parish level, and the barriers to job creation caused by taxes eradicated, I'll bet you more people would be found some work, appropriate to their abilities, even if it didn't give them everything they need and then people would feel much better about helping them out with the rest - because they were trying to help themselves as best they could. We have no way of measuring that at a national level really.
We have a Professor here at Brookes, a chap called Steven King. His area is the History of Welfare mostly in the 18th and 19th centuries - probably the period which received wisdom says was the harshest environment if you were poor or hapless. But I was fascinated by a lecture he gave a couple of years ago on being elevated to the professoriate (you are elevated to that aren't you?). Apparently when parishes were responsible for pensions, those who actually got a pension - those whom their own peers and neighbours if you like knew had simply tried and been unable to support themselves (in common parlance I guess the "deserving poor") would get on average 75% of the average working wage for their area. For others there were varying levels of support down to a pretty basic safety net that was intended to be subsistence rather than comfortable for those they felt were "swinging the lead".
And then there's the problem of administrative costs. If I had an extra 40% in my pay packet and was going to give it away, I'd know that the people or organizations I was giving it to would get all of my donation. I'll bet for the 40% the state apparatus take off me in taxes, probably half actually gets to someone who needs it, to direct service delivery, if that.
So, given all those disadvantages of, and the singular advantage that people actually vote for, this tax based welfare system at some level or another, is it not just possible that by doing away with all that coercion, all that centralization, all that unproductive bureaucracy, the people who get to keep what they earn would be quite proud to "do the right thing" by their neighbours and communities? If they vote at the ballot box to have money taken off them by the state for things they obviously believe are necessary, would they suddenly feel they were not necessary or that they should not contribute towards those same things without the threats of the state? Isn't that a totally illogical position? You'd vote for it but not do it if the people you vote for didn't force you to do it?
And so, at the very least, would it not be at least a courtesy to accept that Libertarianism is an optimistic creed; that it is positive about humanity's innate ability and even need to help each other. You may call that a naive optimism. But I'd rather be a glass half full freedom lover than the glass half empty authoritarian approach that says humanity will not help itself unless it is forced to do so by the agents of a state apparatus that may, just may, cause more problems than it actually solves. Libertarian is not a "devil may care/beggar thy neighbour" philosophy but one that places the utmost faith in people, as individuals, to know and do what is right.
And as to whether it is a "coherent philosophy" or not, I submit that "non-interventionism" is the only truly coherent philosophy in the game. For once you admit the state can do one thing better than we can through voluntary co-operation, you inevitably end up in endless arguments between factions about just how much the state can do better, and the ultimate end of that arms race is totalitarianism - that the state can do everything better than voluntary co-operation. Which is manifestly not true.


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9 comments for "Private charity, voluntary co-operation or state welfare".
1. Human beings are very good
Human beings are very good at defining in-groups and out-groups. We are considerate and generous to those in the in-group, and riuthless towards those in the outgroup. Voluntary charity works fine for the in-group, but does nothing for the out-group. Which is a long-winded way of saying your proposals are fine, unless you are gay, or black, or female, or otherwise excluded from the group of Most Privileged People.
2. Two things on this -
Two things on this - firstly, a couple of years' back I delved into the figures and IIRC the govt spends about 10% of the total welfare budget on administration costs.
Second: I when welfare payments are devolved to such a low level whether it really is the "deserving" poor that get the money or "the friends of the parish councillors", which is something different. Surely one can see the scope for pillorying a cheating husband or whatever by denying benefits payments? In that sense, I would rather have a large impersonal organization figuring out how much I'm worth. Of course, I would much rather there was no "figuring out" at all and everyone just got paid a basic income...
3. Iain, point taken. I do
Iain, point taken. I do think, however, that nowadays with mass communications and so on, these issues could be dealt with. "Parishes" (I'll continue to call them that though it's not necessarily what I mean - communities, neighbourhoods, individuals even are more like it) are not so isolated as they perhaps once were. If one community is failing its people and another next door is doing the right thing I think there would be pressure sufficient to make some changes. Second I also think about non-geographic communities. Minority groups are particularly good at establishing these in any case. I for example have helped out people on a gay social networking site whom I have never met in person.
Anon - thanks for the figures - I am very surprised that it is so "efficient" though I'll bet that 10% is only calculated as a proportion of what they actually receive - so there's the treasury's costs of collecting tax, the cost of evading tax (I'll best most people who really object to contributing something towards their fellows are already the one who evade as much tax as they can anyway). And I was also including stuff like health and education where it seems to me that the non-teaching and non-clinical budgets are enormous. There is debate of course about how necessary non-delivery departments are but I suspect they could be more efficient with local "competition" too.
Also, I am not in any way suggesting the basic income funded from land fees should not happen - that to me is a touchstone of equity. So we are "only" talking about those who actually need more than this subsistence level. I suspect that takes much of the sting out of arguments against.
4. Given that we have a
Given that we have a lifeboat sevice funded entirely by private donation, I'd say that the idea that state-intervention is the only way to provide a safety net is dubious to say the least.
If you go with the state-interventionist belief, lifeboats would be one of the areas where you would expect people to be saying "it's their own fault for going out to sea," or "if they need a lifeboat, they should pay for it themselves or take out insurance," but people freely support the RNLI with millions of pounds of donations.
5. Land Value Tax tag
Jock,
I notice that this item is tagged with "Land Value Tax".
Do you think this is a helpful tag that will assist one in sorting postings from within your blog? ;o)
6. Hmm - I do refer to LVT as
Hmm - I do refer to LVT as part of my solution of course.
In my move to my new blog layout I hope I will get the time to redo categories a bit
7. Sorry
Hi, sorry, the anonymous comment was from me.
There's a *thrilling* 244 page document here - http://www.hm-treasury.gov.uk/media/E/B/pesa07_complete.pdf - that has a lot of numbers on government expenditure. DWP spends £6bn out of its ~£120bn budget on administration (table 1.9 on p32).
Now, I don't know whether that's Whitehall admin or admin total - and I sure as hell can't be bothered to find out! - but even adding an extra six billions on to account for running the courts and so on would give the 10% figure.
8. Thanks for that
Thanks for that sanbikinoraion. So DWP is quite efficient (though I suspect if I paid a 6% management fee for indpenedent management of my finances I would be appalled). Which is something. My 40% however does not all go into this does it. Overall we know there are billions spent on QUANGOS and all sorts of government waste which is not only above and beyond what we should be looking to the state to do, but keeping real people, often useful intelligent people, out of productive employment!
Besides, however efficient DWP might be, I do not know for myself that my money is being wisely spent supporting people who need it, people who only need it because of the benefits trap, or people who don't really need permanent support and would find some way of earning a part of their keep in a more local, individualistic, welfare system.
9. iain - you know I was
iain - you know I was thinking about your comment a bit more about in-groups and out-groups. It seems to me that whilst it may be moderated slightly by "democracy" the state also does this and we do vote for it. We vote to be hard on immigrants, say, or hard on gay people depending who we vote for and occasionally we get our way.
Would it not be better for me as a gay man to live in a free society where I can find somewhere to fit in, than to live under a Tory government, say, in the age of Section 28, where nationwide legislation does me over even though a minoiryt of all people voted for a party of which that was part of their platform?
And, as i say, I think the difference between the intolerance of one self-governing community and another would nowadays be lessened because we are all living in a market and can see what our neighbour, near and far, are doing and face pressure to do likewise if it works for others.