E-Book Content
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u ustifying State Welfare
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The New Right versus The Old Left
David Harris with a Foreword by David Miller
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RRITISH uanAAV DOC';· ;:-; T ~U~PLV CENTRE
13 ~JUL t987
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Basil Blackwell
Contents
Copyright © D:ivid Hmis 1987 First published 1987 B:isil Dl:ickwell Ltd 1011 Cowley Road, Oxford, OX.. IJF, UK
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Basil Bl:ickwell Inc. 432 Park Avenue South, Suite 1503 New York, NY 10016, USA
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Foreword by David Miller Preface Introduction
Except in the United States of America, this honk is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, re-sold, hired out, or otherwise circulated \\ithout the publisher's prior consent in any form of binding or co\·er other thnn that in whibfigations within families, most market liberals ~· accept the existence of an unenforceable obligation to give alms. The duty 1 to act charitably is thought of as an imperfect obligation, that is, one tliit is owed to no specific individual;uuLonc..JhaLma.y..be- fulfilled- on_ occasioDS-.OL OULcho;Qsjgg:_f:ven if there is no such oblinJion, ~IU~ re,££gnized that some P,.s.2Hle are altruists. Altruism and imperfect obligation are tfi'C6iiiSQfcharity. To as great a degree as possible private charity should be encouraged to pick up cases of unmet need. A society in which charitable sentiments flourish is attractive, since the moral fabric of the community is enriched and strengthened. Moral approval of the generous and censure of the parsimonious encourages the development of caring and virtuous people. Gifts to the needy elicit appropriate responses of gratitude, and relationships expressing concern and gratitude cement the moral community. But these relationships cannot be enforced; their cultivation is rooted in their voluntarism and spontaneity. Private charity is a delicate plant that needs careful nourishing. Its growth and vitality quickly suffer in a welfare state. Contributions of time, effort and money are less forthcoming if people befieve that the government is, or ought to l:>e, dealing wiih a problem.29 People are also less willing to give generously if they believe that their disposable income is reduced by an unreasonable or immoral tax burden. To the extent that state provision of welfare goods is inevitable, services should be organized to minimize any deleterious consequences for private charity. As a practical matter, it has to be accepted that neither family or private charity is likely to catch all cases of unmet need. The need to specify the extent and terms of state intervention is inescapable. One
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Market Versus State Welfare Provision
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Market delivery of welfare services displays clear advantages over state ~rovision. First and foremost., it is simply that consumers are offered a ncher degree of choice than nonmarket services provide.'"Consumers can Choose a service closely tailored to the specificity of a given need. They can put together a package of services covering the range of their needs which correspond to their preferences, not those of a bureaucracy or legislature. By being free to choose, the consumer escapes the forced consumption of a particular type, quantity and quality of a standardized service. Utilitarian advantages follow from market provision. The state often supplies a service free at the point of consumption. Standard neoclassical economics