Turning huge divide of area between the poor

Turning now to the question
of council housing by and large “1The
reason why council housing was established because private sector was unable to
provide  affordable housing for low
income households”. Housing welfare benefits require humongous amount of tax
payer’s money to up keep as government is determined to use up their resources
to provide shelter. Housing boom in the previous decade have played a very
pivotal role as the number of properties rented have risen significantly as
well the renters. The key drivers of this housing bill expected to rise even
further is due to government’s incapability to build additional council housing
and major subsidy cuts has made it impossible for low income families to afford
the sky high rents. “2On
the other hand we could argue that right to buy housing act introduced in 1980
by Thatcher government” has been extremely debatable due to the fact that state
owned assets which appreciated in value were given away at very discounted prices
to low income families to develop their lifestyle which in the longer run we
can see has resulted in housing crisis and very inflated house prices resulting
in vast shortages in the public sector.

 

“3Consequentialism
is an ethical theory that judges whether or not something is right by what its
consequences are”. This claim supports the idea that many lower income families
who are heavily dependent upon the housing welfare has been granted council
housing in the posh areas of the country whereas the middle class cannot afford
housing at such some exclusive areas which sparks dispute whether lower income
families should be granted those privileges at tax payers expense but on the
contrary this can also cause a major social misbalance due to a huge divide of
area between the poor and rich. To illustrate this point David Ricardian’s
theory of rent aims to prove this point as the demand and population of the
country increases it’s not enough to meet the obligation of the growing demand.
As Ricardian proposes that its migrants will have to be settled on a different
land which in our case proposes that the increasing number of housing welfare
individuals could be allocated houses more efficiently accessible outside
London as that resolves the issue between the government’s affordability and
protect the lower income families from the ever rising London rents.

 

Generally speaking, full employment is when everybody
is employed with a reasonable paying job. “4As
for unemployed people claiming Job seekers allowance or universal credit, there
were 804,100 people claiming these benefits as of September 2017 and this
number has grown 3.3% in contrast to last year”. Research has shown that
although the number has risen claiming benefits the current unemployment in the
economy is one of the lowest in comparison to the past three decades. This
could be due to UK’s economy traditionally known as an ageing economy with a
lot of retirees being replaced by younger workforce to take over their jobs. Adam
smith believed value in use and value in exchange are essential element to full
employment due to UK’s employment hitting record highs but the regular growth
of pay has stagnated whilst the inflation has risen. The industries and the
economy are gaining the same value from the workforce but value in exchange
does not exist which makes the employees worse off making them demotivated to
work and this can overall put the figures up claiming for job seekers
allowances in the long run due to no incentive for the workers to be in full
time employment. Pareto efficiency is interconnected to full employment as
employers are ought to share higher wages as part of the profits made by firms
to make the allocation better off by dividing the resources. Trade union
membership in the UK has been on the decline due to changes in the corporate
structures and unions unable to adapt have lost most of its power but the major
benefit it can provide they can help increase the wages for the employees by
negotiating a middle ground with the employers.

 

 Equal distribution of income and tax rates play
a major role on the welfare reserves of a nation. UK is one such country who
has high inequality in income. Inequality in income is raised by many factors
such as disability, unemployment, academically weak and so forth. This unequal
distribution of income can cause major inequality due to the unaffordability by
a section of people who cannot afford to buy goods and services which prompts
the government to mediate by providing them the basic necessities for their
survival.  “5Households
in the bottom 10% of the population have an average income of £9,644 whereas
the top 10% have net income almost nine times that £83,875” This evidence
suggests that inequality in income is wide spread which reflects in government
spending over 30% of their income generation on welfare. Progressive Tax rates
are of paramount importance for the government as they can collect higher
amount of income tax through high earners however one should also consider that
it will be extremely discouraging for individuals to work harder and create
more income. Adam Smith was a firm believer that inequality is not acceptable
for the further growth of economy infact he considered higher wages for the
workers and lower profits as even distribution was his goal. Moreover, wages
should increase if there is wealth creation as he saw employers gaining the
power over employees by influencing law makers to pass regulations in their
favour as wages were not simple as supply and demand. Karl Marx claimed
inequality in income distribution supports the elite rather than the oppressed
who are being exploited amongst the social classes and not given their fair due
for the labor that’s been put in by them.

 

State Pension is the largest
paid welfare fund paid by the government as technology has upgraded and life
expectancy has gone up which means year on year the pension allocation fund
will keep on increasing but this is what the individuals have worked for
throughout their entire career. “6Steve
Webb the pensions minister said that people earn their state income throughout
their working lives by paying their national insurance contributions and feel
stigmatized by the idea that they are claiming benefits” We might conclude that
state pensions do take the lions share out of the welfare funds but they are
deserving of their efforts and contributions to the economy. While it is
generally agreed that pensions are long term savings plan the government on on
the other hand has decided upon scrapping the pensions limit. “7Chancellor
Phillip Hammond had proposed a cut to the annual pensions savings limit from
£10,000 to £4,000 a year for those who have already made use of their pension
freedoms”. This claim supports the idea that retirees would have to be cautious
with their reduced allowances as this cut can weaken the certainty of
individuals saving for their retirement. Moral absolutism applies to all the
individuals part of the state pension scheme as society has the phenomena for
years how important pension is to the future and managing it would require
putting it in a good tracker with diversified portfolio. Ethically investing in
to your pension pot takes grass root research to nurture it in a way for a
secured for the forthcoming future.

 

The national debt of the UK
is 8″£1.6
trillion”. In order to reduce this deficit, we must take firm steps like
issuing bonds in to the economy to raise capital which would save us from
raising additional taxes but at some point in time the government will have to
return the debt back to its lenders with added interest so it apply more than
one policy to gather as much momentum in the economy as possible. Lowering
interest rates would mean consumers will spend more on goods and services and
businesses will tend to borrow additional machine to take on new projects. The
national debt is an enormous number that government need to tackle head on or
the economy will need to borrow additional funds year on year without never
giving itself an opportunity to see its treasuries in surplus. “9Theresa
May is ready to turn UK into a low tax low regulation haven after Brexit”. This
evidence suggests that customs and duty in the country will become extremely
expensive pushing the living standards high but observing the current scenario
with wages stagnated this might make it a terrible move as the citizens would
suffer indirectly and in response the welfare funds will absolutely sky rocket and
might cripple the already distressed economy. This argument does not take in to
account that firm’s registration fees plus thousands of off shore companies wanting
to be domiciled in the UK could mean billions of added revenue in the economy
which can be injected back to improve the current state the welfare is in. It
is worth stating at this point is that the UK will only go forward with their
decision if the EU declines them single market access as there’s a deep ethical
dilemma in regards to which party is going to gain the edge or they manage to
come up with an amicable solution to it.

 

Currently the UK gives out 10″£13
billion” annually in foreign aid which is the highest by any country and it
estimated that this figure might increase by the year 2020. There is an outcry
by the general public that tax payer’s money should be used sensibly by the
government to better our resources such as injecting this money in to NHS or
social care. India is one of the countries where UK sends its aid every year
and this what its Finance minister had to say “11We
do not require the aid. It is a peanut in our total development expenditure” This
statement reflects that not every country we give foreign aid to require it and
thus we should be restrained when wasting our valuable resources and using it
where they are strictly needed.UK followed an altruistic path by helping less
economic developed countries to improve their economic structure and help deal
with problems such as poverty, corruption and inequality.

 

From the arguments presented
in the essay one might conclude that state’s first priority should be the
national health service which is in dire straits at the moment due to lack of
funding which is of paramount importance as people’s lives are at risk. Secondly
there should be a change in legislation for council housing to be transferred
outside London while the government should sell all the council estates which
it owns in prime locations and elsewhere to the private sector and free up
billions of pounds to be used constructively for the development of welfare
system. Lastly the government should take initiative to bridge the gap between
the equal distribution in income by have its own talent wing to have
individuals specialise in skills in different sectors where there is more
demand for jobs but less supply as this can make a difference not immediately
but surely in the long run of the economy.

 

Word count

2493

1
https://fet.uwe.ac.uk/conweb/house_ages/council_housing/print.htm

2
http://www.politics.co.uk/reference/right-to-buy

3
http://ethicsunwrapped.utexas.edu/glossary/consequentialism

4
https://visual.ons.gov.uk/welfare-spending/

5
https://www.equalitytrust.org.uk/scale-economic-inequality-uk

6
http://www.telegraph.co.uk/finance/personalfinance/pensions/11194265/State-pension-is-not-a-benefit-says-minister.html

7
http://www.telegraph.co.uk/pensions-retirement/news/governmentgoes-ahead-pension-tax-relief-cut-over-55s/

8
http://www.telegraph.co.uk/business/2016/02/19/how-large-is-the-uks-national-debt-and-why-does-it-matter/

9
http://uk.businessinsider.com/theresa-may-stands-ready-to-turn-britain-into-a-tax-haven-after-brexit-2017-1

10
https://www.express.co.uk/news/politics/790740/UK-spends-more-than-three-times-foreign-aid-than-rest-of-world

11
http://www.telegraph.co.uk/news/worldnews/asia/india/9061844/India-tells-Britain-We-dont-want-your-aid.html