In fact it was a significant development in the sphere of welfare and welfare rights. It established the key features of welfare that had an echo in the decisions made by the more recent governments, though the Beveridge Report was propounded to identify the changes required after the II World War. The past economists such as Keynes and Adam Smith did influence the way the DWP works today, including the current propositions extended by the new conservative and liberal democrat coalition. The influential economists like Keynes in particular made some assumptions regarding the future problems and crisis pertaining to inflation and unemployment and influenced key debates centred on the British economy. In that context, the Beveridge Report definitely created a controversy. The Labour party actually denounced the Report and labelled it to be “Beveridge’s individual contribution” that intended that the people from low income groups would still need to regularly contribute to the national exchequer on a weekly basis, regardless of how much they earned. Professedly the provisions made by the Report were aimed at rescuing the British economy from the effects of the War. With no constitutional measures in place, the Report intended to regulate the requisite provisions only until 1946. The Keynesianism differed from the Beveridge Report with regards to the idea of the multiplier effect. In contrast, the Beveridge Report focused on making a revolutionary change with the contribution of a single idea that the not so wealthy would pay at the same rate of taxation as those who were wealthy, which was a problematic proposition for the poor people. Also the social insurance as the primary provision was proposed to be considered a major part of any comprehensive social policy. The Beveridge Report also ignored the issues related to gender, class and race. The Keynesian ideology on the other hand facilitated a distinct evaluation of the economic system and social security that led the contemporary government to rethink the changes required in the present day British economy. Keynes supported the incentives to government spending and stated that “equilibrium could be established before the point was reached, and therefore the governments wishing to achieve full employment had actively to intervene in the economy by stimulating aggregate demand, and conversely that if full employment resulted in inflation, they should act to reduce aggregate demand, in both cases by using the devices of tax, policy, government expenditure and monetary policy”. Thus the idea of government intervention in a way challenged the notion of laissez-faire. Applying the idea of utility to employment, Keynes said that “if the utility of real wages from a given amount of work was greater than the disutility from work, workers would be able and willing to work; hence supply of labour would be forthcoming on the labour market”. Actually this concept is more complicated than it sounds. Keynes facilitated a clear model to demonstrate the relationship between inflation rates and the interest rates in Britain (Kriesler & Sardoni 1999). This in a sense allowed an understanding of what could happen in the future and the economic frustration rampant in the contemporary society. In that context, Keynesianism extended influential studies in economics as Keynesianism, Post-Keynesianism and Neo-Keynesianism. The proponent of the
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