Creation of Employment
Social Welfare Policy
Social welfare policies refer to the guidelines and principles that affect the living conditions of people. They are aimed at improving the quality of people’s lives and solving the social problems that are prevalent in the society. Examples of social problems are; poverty, poor health, unemployment and education among others. Poverty has been an urgent problem for the world. The primary cause of poverty is the low income earning by the poor Poverty is defined in terms the amount of revenue that people receive, problems of physical health, living conditions, and living locations (Blank, 2017). Thus, the best way to reduce poverty is through the increase of the income of the poor through creation of new jobs. The poor should be considered as the producers and emphasis should be put on buying from them. Developing countries seek for foreign aid to trigger economic development by creation of more industries, which create more jobs.
Employment has grown disproportionately over the years. Traditional low paying services industries have grown and employed more employees who are paid above median wages. The labor market has grown to offer more opportunities and policies to workers to deal with job transitions. The economies are creating more jobs as an indicator of the rapid economic transformations that reduce poverty levels. Statistics by Bureau of Labor have shown that employment levels have grown by 7.8% since 1993. Additionally, the unemployment levels had reduced from 7% to 5.6% since 1993. Employment is expanding at a consistent pace and the poverty levels reducing at the same pace.
Other policies such as progressive taxes and increment of the benefits for the poor should be considered to eradicate poverty. For example, through the increase of income tax from 40% to 50% will take more tax from the high-income earners. The amount of income saved through progressive taxation can be used in other ways like purchasing of food, paying school fees among others (Prasad, 2017). Additionally, the increment of the welfare benefits to those who earn low income will help eradicate poverty. This ensures that money is given to those who need it most through either pension credit or family tax credit. Most governments use universal benefits because it makes people feel they benefit from the tax that they pay. However, selective provision of benefits ensures that those who do not require them do not waste resources.
There have been political debates over progressive taxation. Most of the political leaders argue that it leads to income inequality in a country. This is because the tax is used to fund government sending’s such as social safety nets and transfer payments. They argue that income inequality may lead to class conflict and adverse effects on long-term economic growth. On the other hand, they claim that increment of benefits for the poor creates a disincentive to earn a higher income (EUR-Lex. 2017). This is because if you get a high salary job, you will pay higher tax and lose some of your benefits. A vicious cycle develops because of this, and the country ends up being underdeveloped. Furthermore, they argue that the policy will lead to wastage of resources by those who do not need them.
In conclusion, creation of employment, progressive taxation, and increment of benefits for the poor reduces of poverty levels. However, these policies face political ramifications from the leaders. They discourage progressive taxation because they create a disincentive to search for well-paying jobs. Additionally, the increment of the benefits for the poor lead to wastage of resources by those who do not need them.
Blank, R. (2017). Welfare and the Economy. Brookings. Retrieved 28 July 2017, from https://www.brookings.edu/research/welfare-and-the-economy/
Employment and social policy – EUR-Lex. (2017). Eur-lex.europa.eu. Retrieved 28 July 2017, from http://eurlex.europa.eu/summary/chapter/employment_and_social_policy.html?root_default=SUM_1_CODED%3D17,SUM_2_CODED%3D1704&locale=en
Prasad, N. (2017). Policies for redistribution: The use of taxes and social transfers. Retrieved 28 July 2017, from http://www.oit.org/wcmsp5/groups/public/—dgreports/—inst/…/wcms_193159.pdf