Welfare Capitalism - Essay Example

Welfare Capitalism Welfare capitalism in economics refers to a capitalist economy with comprehensive policies regarding the social welfare of the entire state. The welfare is financed by the government through taxes generated from privately owned premises and enterprises, as well as income taxes. In addition, capitalism welfare may refer to the act of business providing welfare services to its staff and over all employees. A welfare economy helps its people by offering short workdays, minimum pay, and guidelines on workers age, as well as unemployment benefits. In many states, welfare capitalism uses government policies and regulations to subject businesses to remit taxes. Some governments require business entities to contribute some of the profits or funds to assist paying workers who are incapacitated or injured during job execution. These funds should cover even those who are terminated from a job. This paper will seek to evaluate the benefits of a capitalist economy in terms of health and social welfare to its people. Welfare capitalism provides a platform for safety to the individuals working and living in such a society (Radu-Marcel, 2012:61). In most cases, employees face challenges of paying for minimum lifestyle needs, therefore, need assistance during hard times. Through the government payouts, workers can maintain their get some income to sustain their needs until they get a reliable source of income. In a capitalist economy, there is a provision of choice of food and diets than before the establishment of such economy. People can access low fat food, free-range food, and organic food. In addition, the government regulates that food manufactures should indicate the nutrient values and other essential information about food content on the packaging. This makes sure that a customer is well informed on the various choices of foods available. Government campaigns have brought up awareness on the importance of fitness to a healthy living; this brought up many gymnasiums (Bradshaw, 2004:19). The impact of these facilities is a fit society although other people consider surgery for a slim body, which may have a very negative, impact either in terms of money or health status. Although capitalism advocates for good and standard health to all it individuals, it is obvious that rich people live healthier and longer lives than the poor people. In the US, healthy differences are indicated by the fact that the poor die four times the rich due to their difference in affordability of good health care facilities and nutritional foods(Scott, 2009:35).. There is a big difference in life longevity or life span between the low and the high economic set up groups. In many countries, the rich almost live double lifespan the poor due to health inequalities. Health inequalities refer to those differences that are unjust and consequences due to underprivileged position. The structure and organization of capitalism produces health and social differences within and between nations and its inhabitants. Social, income and health inequalities associated with capitalism are based on different society status. Since health cannot be detached from the other elements of social life, health differences are at conflict with political, economic, and political policies affecting the economic growth and welfare (Emmerson et al, 2009:43). Capitalism gives a view that every individual selfishly works for own benefit and money, but when assessed keenly, it gives a pass that each job benefits a second and third person indirectly rather than the performer (Scott, 2009:41). For example, factory workers and casuals produces goods at a wage rate; these goods and services benefit every consumer, taxes levied on the incomes is used to provide public goods to the whole state. For example, some services like hairdressing is useful directly to the worker and recipient as the recipient benefit from social good as well as gaining confidence, police work is to protect common people and enhance law and order therefore, promoting peace and well being of the country as a whole. With capitalism, policies on insurance and assurance of financial help once a worker has financial incapacities turns out to be an illusion. Although there is a common perception that, people shall not get support from the government and involved institutions if they terminate job due to illness before retire age, this thesis has no foundation. Many people assume that for one to benefit from pension schemes, has to have worked till retire age but on the opposite, the government has established policies to the pension institutions stipulating that people can get their dues any time of their need prior to pension age (Radu-Marcel & Catalin-Emilian, 2012:165). In addiction, there is universal credit to those who are willing to get loans for either business development or personal advancement. This gives every willing party an equal opportunity to access funds and other resources to establish and stabilize business. In return, the repayment of loans includes a small fee, which acts as interest and security for the continuity of such a service. Changes in social benefit scheme have big impacts on both tenants and property owners. The roll out of universal credit scheme shall replace many existing benefits. This scheme focuses on supporting housing unions for the preparation of changes, monitoring and managing the effects of reforms as well as influencing the reform implementations. The federation suggests that housing the corporation should pay house benefits to the residents directly rather than the proprietors. However, research indicates that if these housing benefits are given directly to tenants, majority will not pay rent, therefore, will use the money on other issues, and eventually run into debts. This shall pose urgency of extra support to the nationalities since they shall need advisory services on financial management. Therefore, a delay on the implementation of the scheme shall be of importance for the government since it will establish a trial phase with safety nets for the most vulnerable situations. The government should invest in a system that establishes a process for identifying individuals who are struggling to control and manage housing costs; help them avoid eviction from their houses by house owners. Therefore, the government should slow down on its speed of implementing this policy for individuals living in social housing else, it could down play its goal in the universal credit and drive residents into financial breakdowns. Approximately, million people residing in social housing shall require extra assistance and support to manage their financial budgets if the universal credit scheme is implemented since their housing benefits shall no longer be paid directly to property owners (Rosenbluth, 2012:49).. This places a challenge that these individuals will fall into debt if all housing benefits are paid to them directly in a single monthly deposition. The current policy that housing benefit is paid to land lords and other benefits paid to tenants weekly regulates financial utilization making the individuals spend their money wisely; spreading it over a longer period. This policy may negatively affect government effort to increase new housing facilities aimed at developing the economy. If people do not pay their rent as required, they may be subjected to big debts from rent arrears. This may affect the federation negatively because if debts accumulate largely, many housing schemes will stop building houses, therefore, stopping economic growth, and development (Rosenbluth, 2012:50). A survey done on people living in the housing corporation buildings indicate that, majority fear not to use their money well if they are paid directly and at once. Currently, many people earning small amounts of income are able to live a good life. It is important if the government carries survey to establish the most vulnerable people in the society and pay their housing benefits to the owners directly. Notably, the main aspect of capitalism is to create wealth, which results to inequality. These inequalities result to competition, therefore, a health struggle for resources leading to community development. In a corporate world, the essence of business is to maximize profits. Therefore, if focuses on the value efficiency over every opportunity including moral considerations. Industrial revolution and capitalism brought western countries to massive wealth (Deacon, 2002:112). However, this is a positive element, rights actions, strikes, and antitrust decisions ruined people at the time of wealth creation. Inequality is good as long as it is generated by free and market. People and businesses land in economic challenge targeting successes; the outcome varies on ones abilities, character, and intelligence. Therefore, in case of failure, the specific individual carries the blame as the government gives everyone equal opportunity through rules, policies, and regulations. Capitalism advocates for survival for the fittest therefore assisting the weak individuals tamper with inequality as this slows natural selection (Davis and Harrison, 2003:650). The government has a cap stating that adults of working age with children shall receive more payment than those working, but have no children. This means that children shall be given first priority and special attention by making sure that their parents earn enough income to sustain the families (DHSS, 1983:60). This is a positive element since just like adults, children have needs that need to be catered and if parents earn enough to cater for their needs, the overall welfare in the society will be good. The government also focuses on the physically disabled by introducing disability living allowances whereby families with disabled people shall receive these allowances for their upkeep and reduce their level of dependency. Establishment of health centers and clinics boost welfare in the society since people get treatment and health care from trained nurses (DHSS, 1983:78). The main goal for these centers is to make health care services available to every citizen therefore, the government established NHS as the key providers of health care services within the state. Social life has improved greatly though employment policies like abolishment of child labor, therefore, improving working conditions. Industries no longer use child labor as well as the fourteen-hour working schedule per day. Workers have a well-set minimum pay that they find not oppressive to accept. To attain such working conditions, workers have to fight for their rights through strikes and demonstrations. This is because employers focus on every available way to maximize profits and not workers welfare. Naturally, not everyone embraces competition; it only brings happiness to the winner leaving the looser in a depression and sad situation. Unhappiness does not bring energy and motivation to individuals but results to discouragement. Therefore, when a country gets richer due to wealth generated by businesspersons and enterprises, more inequalities are present (Welfare, 2012 11-12). This is a clear indication that capitalism does not lift the whole society but creates social and economic gaps. The bigger the capitalistic economy, the diverse its individuals are. Even if a poor is hard working and dependable, they remain powerless therefore, still in a low social class in the society. Research shows that inequality is more lethal than accidents, alcohol, pollution, obesity, AIDs, cigarettes, homicides, and suicides in a society. It is evident that people living in an unequal society experience shorter, violent, and unhealthier lives. Social inequality is directly linked to life expectancy and social ills. Poverty is also an element of social inequality and poor health. On the other hand, richer nations have shorter life expectancy than socialistic nations. This is because societies with high trust elements and social groupings experience longer and healthier lives, as well as minimal violence (Allsopp, 2011:80). Vividly, every community faces social gradient and the steeper the gradient, the killer the community is. Conclusion Government failure to provide protection to those who are financially weak and in danger will increase the risk of huge debts, as well as threaten building of more houses in the future (Welfare, 2012 10-12). This as a result may lead to low living standards, risky health environment, as well as promoting a criminal society. The above vices are elements of underdevelopment and economic struggles. It is clear that a portion of tenants shall be well placed tan others in coping with the new scheme. A report shows that the majority of people who struggle in life and finances will bear the most risk of this scheme. Bibliography Allsopp, M. 2011, 'Raising Children in a Global Village: Lessons From South Africa', Child & Youth Services, 32, 2, pp. 78-87, Academic Search Premier. Appleby, J., Crawford, R., & Emmerson, C. 2009. How cold will it be? Prospects for NHS funding 2011-17. London: Kings Fund. Baggott, R. 2004. Health and health care in Britain. 3rd Ed. Hampshire: Palgrave Macmillan. Blaire, A. 1998. The Third Way. New Politics for a New Century. Fabian Society: London. Bradshaw, P.L. 2008. Service User Involvement in the NHS in England: Genuine User participation or a dogma-driven folly? Journal of Nursing Management. 16: 673-681. Bradshaw, P.L., & Bradshaw, G. 2004. Health Service Policy for Health Service Professionals. London: Sage Publications. Davis, H.T.O. and Harrison, S. 2003. ‘Trends in Doctor –manager relationships’, British Medical Journal, 326, 7390, 646-649. Deacon, A. 2002. Perspectives on Welfare. Cambridge: Open University Press. DHSS, 1983. NHS Management Inquiry Report, Chaired by Roy Griffiths, Department of Health and Social Security, London. DOH 2001c. Assuring the Quality of Medical Practice: Implementing Supporting Doctors, Protecting. Knaak, S.J. 2010. “Contextualizing risk, constructing choice: Breastfeeding and good mothering in risk society”, Health, Risk & Society, 12, 4, pp. 345-355, Business Source Complete Marquez, M.M. 2012, “Allocations, Common Application, Waivers, and Alternative Requirements for Community Development Block Grant (CDBG) Disaster Recovery Grantees Under the Department of Housing and Urban Development Appropriations Act, 2012”, Federal Register, 77, 73, Radu-Marcel, J. & Catalin-Emilian, H. 2012, “Analysis of the American Economic System – from the Old Capitalism to the New Capitalism”, Theoretical And Applied Economics, 6(571), p. 165, Rosenbluth, S.L. 2012. “Fair Housing Act Challenges to the Use of Consumer Credit Information in Homeowners Insurance Underwriting: Is the McCarran-Ferguson Act a Bar?”, Columbia Journal Of Law And Social Problems, 46, p. 49, Scott, B.R. 2009. Concept Of Capitalism, n.p.: Business Media, eBook Collection. Warner, M, & Gradus, R, 2011, “The Consequences of Implementing a Child Care Voucher Scheme: Evidence from Australia, the Netherlands and the USA”, Social Policy & Administration, 45, 5, pp. 569-592 “Welfare Reform Act 2012 Chapter 5 Explanatory Notes”, 2012, Public Information Online. Read More