Tuesday, September 27, 2016

Policy and Social Welfare

Policy and Social Welfare

According to the article Finland Wants to Replace Welfare Programs with a Minimum Income for All Residents, Finland is going to giving every Finnish adult a basic income of about $866 per month to replace previous unemployment benefits, old-age pensions, maternity allowances, health benefits, housing benefits and other earnings-based benefits. This policy is said to save budget, simplify the welfare system and also help to tackle the high unemployment rate problem[i].

The unconditional basic income, referred as UBI, urged discussion. Although it seems to bring benefits to Finland society, some critics said that UBI may just work as experiment to test concepts of social security rather than as a realistic welfare system. Declan Gaffney said in Even in Finland, universal basic income is too good to be true there are several disadvantages that may affect the actual outcome of the policy. Firstly, there are argument that the UBI is too expensive. Secondly, this policy may not suitable for the real world where people are not perfectly rational with perfect foresight and mobility[ii].  

Although some think that UBI is just an idea, this policy interests me for its innovation. Actually welfare states are always worth to study because of their innovative practice. It is interesting that those Nordic nations are Marxism followers and pioneers, offering citizens education, health care, unemployment compensation at a low price.

Nuance differences in policy can result in huge differences in the whole society and people’s daily life. When I was in middle school, I was impressed by an article introducing how Norway set up a social welfare system and the Oil Fund after the discover of oil and gas reservation in the North Sea. The natural reservation brought people not only wealth, but the access to high qualified health care and education. However, this is totally different in China. In the 1970s, a huge amount of coal mines was discovered in Shanxi province and Inner Mongolia Province. Because of the lack of proper management and policy, coal mines did not bring sufficient positive effect to China. On the contrary, there are many problems left to be solved. Firstly, the mines increased not social welfare, but the gap between the poor and the rich. Some peasants made billions of wealth overnight, others are forced to work underground more than 12 hours without security. Secondly, natural environment is damaged. Because of improper mining and manufacturing method, water and air are polluted, and the ground is collapsed in some area. What’s worse, the market equilibrium of coal is damaged, which resulted in a waste of resource.

Social welfare is tightly related to Policy. We cannot be more prudent in policies related to social welfare.

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