Examine the ways in which government policies attempt to deal with the problem of poverty (24marks)
There are four approaches used to help deal with poverty these are the social democratic, new right, third way and Marxist. This essay will include the different ways in which the government policies attempt to deal with the problem of poverty. A Social democrats way of dealing with poverty is by offering universal benefits, which essentially means benefits that everyone is entitled to. This is useful when dealing with the problem of poverty because it creates no social stigma in receiving benefits. For example if there was no universal benefit than because people might feel humiliated of taking it as they don’t want to be labelled, which may discourage people of claiming benefits that they are entitled to. This is also proven by the low amount of people of taken up means benefits. In the 1980s no means benefits had more than 80% take up. The downfalls of universal benefits are that it creates a ‘benefit culture’ where everyone is depending on benefits as a way of living and don’t try and get out of it. This creates a poverty trap in society.
Alternatively , the new right approach supports the means tested benefits which is suggests that benefits should only be restricted to those who are very poor and need it the most. This is useful when dealing with the problem of poverty because it’s cheaper than the universal and the government doesn’t waste its money as it’s only paid for those who need it. Also it reduces the potential of a ‘benefit culture’ people try to get out of benefits more and get a job due to social stigma or other reasons. The disadvantages of means tested are that some people might not get the benefits they are entitled to due to lope holes or problems with the system. Also fear of social stigma in society might put people of in applying for benefits that they are entitled to. Another disadvantage is the process of applying for benefits is very complicating and complex especially someone who’s English is not their first language.
The new right believes that the indirect cause of poverty is the welfare state so it suggests that it stopped to deal with the problems of poverty. Stopping the welfare state helps to deal with poverty because in order for entrepreneurs and owners of successful business to be rewarded is to keep taxation as low as possible. This is done by minimizing the government and reducing expenditure. The welfare state is the largest area of the government spending eg. Employing a burden of people to work for the services and deliver the benefits. Without the expenditure of welfare payments taxes could be much lower. However the disadvantages are that if the government abolishes the welfare state would actually increase. the welfare state and the minimum wage help to protect workers from exploitative employers. If there was no welfare state society would be unequally split between the wealthy minority and a mass of the poor.