No-one wants to pay benefits to rich people, right?
Benefits should be low, and where possible, universal. Means tests distort incentives and remove the incentive to work and save. Gordon Brown loved means tests in order to “target” benefits at “the most in need”. As a shorthand, Gordon Brown liking something is a pretty good reason to be against it. Mark Wadsworth, land-value-tax fetishist extraodinaire, gives us one example involving Pension Tax Credit and Council Tax benefit. Spread this disincentive to save across the whole economy and you’ve solved the deficit which a reduction in the benefit bill would go a long way to sorting out, and the astonishing level of consumer debt explained. That’s before you deal with the cost of administering 70-odd different benefits to which people might be entitled: It just does not pay the average man in the street to save at all, thanks to an idiotically complex welfare state.
http://bracken.uk.com/wp-content/uploads/2017/07/logo-2.png00Malcolm Brackenhttp://bracken.uk.com/wp-content/uploads/2017/07/logo-2.pngMalcolm Bracken2010-06-11 08:27:002017-07-21 01:44:14The result of Means Testing benefits