Welfare, US-style: put the boot in the poor
http://www.theage.com.au/news/20000910/A56177-2000Sep9.html


By LIZ PORTER
Sunday 10 September 2000

Americans visiting Australia are forever remarking on how much at home they 
feel here. And why shouldn't they? We watch their TV shows, we sing their 
music, we imitate their accents and we pepper our conversation with 
TV-learned phrases like "Excuse me?" (where we used to say "I beg your 
pardon"). Meanwhile, we wear our baseball caps back-to-front and our 
sportspeople "high five" each other at the slightest suggestion of an 
on-field triumph. "And why not?" some might say. After all, the Americans 
are pretty good at self-congratulation and high fives are efficient and 
demonstrative. Moreover, Americans make great TV sitcoms.

Why are we aiming to emulate the Scrooge-like way in which the United 
States funds its welfare policy? We surely cannot believe that the world 
capital of inequality has anything to teach us about the way we should 
treat our welfare recipients. Yet the whole of this year's debate about the 
direction of Australian social-welfare policy has taken place in an 
American context.

Our new welfare policy, as framed in the recently released McClure report, 
has the fingerprints of one US "expert" all over it. He is New York 
University's Lawrence Mead, whose July visit to Australia was co-funded by 
the Federal Government.

Professor Mead is best known for having been a major influence on the 1996 
US welfare reforms that limit an individual's right to welfare to a 
lifetime total of five years; and which impose work rules on single parents 
once their children reach a certain age.

The conservative academic is also the author of The New Paternalism: 
Supervisory Approaches to Poverty, in which he describes his policies as an 
effort "to control the lifestyle of the poor" and to favor "order rather 
than justice".

Needless to say, Professor Mead, when he was here, praised the McClure 
report. And he got many column centimetres of newspaper space in which he 
expressed his arguments for compulsory work in exchange for benefits. A 
senior Federal Government public servant had previously travelled to New 
York to visit Mead and bring back the welfare-cutting gospel to the 
Ministries of Employment Services and Workplace Relations.

Then, with the Mead visit to a Sydney conference, we all got to hear the 
flinty-hearted American view at firsthand. And that was it for the welfare 
debate as far as the general public was concerned.

I know I'm not the only Australian voter who would have welcomed a 
wide-ranging national discussion on welfare, one that might rise above 
"blame the victim" demonisation of single mothers and other alleged 
long-term "welfare dependent" people. Imagine, for example, a debate that 
actually examined the policies of leading welfare states such as Norway, 
Denmark and Sweden, countries that pay their unemployed a dignified pension 
while striving for high rates of employment. A debate that would ask 
questions about the social function of taxation. A debate with a genuine 
worldwide perspective.

How many Australians know, for example, that in Norway dole payments are 66 
per cent of an average worker's income, while in Sweden they are 72 per 
cent? (In Australia, they are 33 per cent). Of course, these countries pay 
higher taxes and their social conditions are different from ours. But so 
are America's. And there are still many lessons for Australia in 
Scandinavian economies.

There is an abundance of material making comparisons of various welfare 
states, much of it written by the reigning world expert on the subject, 
Gosta Esping-Andersen, now professor of political science at the University 
of Trento. Esping-Andersen, a former Harvard professor and author of The 
Three Worlds of Welfare Capitalism (1990) and Social Foundations of 
Post-industrial Economies (1999) has a huge international reputation, 
although in Australia his fame doesn't seem to extend past university 
social-research departments.

Esping-Andersen questions the oft-made argument that the welfare state is 
no longer workable because of insufficient money to fund it, pointing out 
that the GNP of rich countries has risen 45 per cent since the mid '70s. He 
warns of the "disturbing rise (in the US) in jobs that pay below poverty 
wages" and points out that the level of many social benefits has followed 
suit, producing unprecedented levels of poverty. Moreover, he emphasises 
the historical role of the welfare state as "a political project of 
nation-building" and an exercise in the fostering of social integration. 
And, most significantly, in these hard-hearted economic rationalist times, 
he maintains a moral perspective, reminding his readers that "the only 
credible rationale behind economic efficiency is that it will produce welfare".

Australians deserve to hear more complex views on welfare than Senator 
Jocelyn Newman's divisive rhetoric about "welfare dependency". 
Esping-Andersen's work seems to be the perfect place to start.

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