The Social Welfare System, Essay Example

An article in Wall Street Journal (WSJ) by Allan Meltzer, a Professor of Public Policy at Carnegie Mellon University, argues that women should have less and not bigger role in the nation’s welfare system (Meltzer). Mr. Meltzer argues that Ron Paul’s plan of cutting the government’s role in welfare state is preferable to President Obama’s focus on healthcare expansion among other government administered programs. Mr. Meltzer seems to suggest that lower government participation in the welfare programs will do more good to the country and he also proposes lowering taxes and not raising them, presenting historical examples to support his position.

The problem with Mr. Meltzer’s position as with everyone else who opposes President Obama’s health care plan is that they still apply the old concepts of welfare to the issues facing the nation. Healthcare is a basic human right and is no less important than education and food. If providing healthcare is welfare then the government should also not provide free education and leave it to the private sector. Doing so will save the government considerable expenses including but not limited to federal loans and grants provided to students are zero or very low interest rates. The problem with the private sector is that it doesn’t do an effective job of providing a service if there are no economic benefits in it. This is why the government takes responsibility for the policing and infrastructure. The costs for infrastructure come from the taxes paid by everyone in the country though the economic benefits are unevenly reaped by the commercial enterprises. We need to realize that healthcare is a basic human right and not a welfare service just as education and food is and it is the responsibility of the government, even in capitalist countries to ensure that every citizen has access to basic human needs. If the private sector is really so efficient, why the U.S. expenditure on health per capita (WHO) was more than twice that of U.K. (WHO) and yet its life expectancy was still lower than the U.K in 2009. This despite the fact that U.K had government administered nationwide health care system and U.S. didn’t have one.

Mr. Meltzer also argues that taxes should not be raised for the high income groups because that would be redistribution of wealth and an example of a state welfare system. Mr. Meltzer argues that raising taxes would lead to inefficient use of the nation’s productive resources. Mr. Meltzer may be ignoring the fact that even capitalist system needs government intervention to function properly and without government assistance, the funds for whom came from taxpayers, U.S. economy might have collapsed during the recent financial crisis. Thus, it is fair that high income groups and corporations pay their fair share of taxes and even the most successful investor of our times, Warren Buffet supports the idea of raising taxes on the rich people. Mr. Buffet has made a fortune in the private sector and Mr. Buffet’s life is an example of a pragmatic thinking and logical reasoning. Media Mogul Russell Simmons makes a very convincing argument when rejecting critics who argue that raising taxes would hurt employment. Mr. Simmons argues that he hired people on the basis of pre-tax profit and not post-tax profit (The Huffington Post).

The critics need to change their definition of welfare and realize that healthcare is a basic human right. In addition, private sector is not always efficient which is why we have anti-trust laws; another proof that sometimes government intervention is needed in order to improve the working of the markets. In addition, the government will not be providing healthcare services or confiscating private assets but merely taking advantage of its size to negotiate better rates on essential healthcare services.

References

Meltzer, Allan H. A Welfare State or a Start-Up Nation? 15 June 2011. 8 November 2011 <http://online.wsj.com/article/SB10001424052702304432304576369933829499132.html>.

The Huffington Post. Russell Simmons: ‘Every Single One’ Of My Employees Pays More Taxes Than Me. 29 September 2011. 8 November 2011 <http://www.huffingtonpost.com/2011/09/29/russell-simmons-taxes-warren-buffett_n_988043.html>.

WHO. United Kingdom. 8 November 2011 <http://www.who.int/countries/gbr/en/>.

—. United States of America. 8 November 2011 <http://www.who.int/countries/usa/en/>.