[lit-ideas] Re: The Welfare State vs the Individual

  • From: "Simon Ward" <sedward@xxxxxxxxxxxxxx>
  • To: <lit-ideas@xxxxxxxxxxxxx>
  • Date: Wed, 24 May 2006 19:46:37 +0100

Discussing unemployments rates at a point in time is not exactly scientific, it 
depends to a large extent on the particular point within the business cycle an 
economy is sitting. It wouldn't be a suprise to find significant differences 
between national unemployment rates over time, however, yet those differences 
might be accounted for just as much by measurement differences as they are by 
structural differences in different economies.

More importantly unemployment rates are dependent upon a basic measure: those 
people who are not employed, but are actively seeking employment. All too 
often, it is the latter distinction that makes the difference. Counting those 
who are seeking employment will depend on their attendance at a 'job centre'. 
Those who don't go to the job centre, but, for instance, are merely searching 
the newspaper ads would not be counted amongst the unemployed. Also, those 
receiving benefits are not necessarily unemployed by definition.

Another significant issue is the number of people not employed officially (not 
paying tax), or those not employed lawfully (active criminals). It is the 
latter variety that might set countries apart. Some indication of the levels 
can be gleaned from international prison populations. By most measures, the US 
has a prison population that is five to six times the comparative levels found 
in Western Europe (measured per 100,000) and twice that found in Eastern 
Europe. 

Assuming a jobless figure of say 5 per cent in the US, then you can add 
something like a percentage point for the number of people in prison. Perhaps 
more considering the age range of prisoners will be roughly equivalent to the 
age group of the working population. 

Leading on from that, we might assume that there as many, if not more people 
gaining income through criminal activities who are not in prison. In which 
case, add another two percentage points to the figure. 

You could argue that without a Welfare State, the probability that an 
unemployed person would engage in criminal activities to make ends meet is 
higher than for a society with a Welfare State. Crime is a function of a social 
and economic structure just as much as unemployment. 

Simon





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