Welfare - and the Dole !

There is pressure building to remove the structure of welfare payments from  decisions by politicians - to a yet to be formed independent body.   It is argued that welfare levels should be based on the cost of living - not on a percentage of the minimum wage - as is currently the case.

The problem is that such a body would have a very different perspective from politicians.   It would be easy to justify big increases across all sectors, based on living costs and the aspirations of a just society.  Finding the money would not be the concern of such a body.

We would do well to consider what is happening in Europe at the present time.  The formation of the European Union (EU) brought this combination of nations under a common welfare umbrella - and an excess of benevolence has exceeded it's ability to pay.    Wages are being cut - and with them - pensions and allowances, and as a result the people are in the streets, manning the barricades.

Europe - and many other world countries - have been living beyond their means.   This economic downturn has seen Treasuries caught short as they try to bail out banks and commerce.   Where it will all end is still an unanswered question, but for most people further welfare generosity is out of the question.

Many people point to the frugality of the dole here to illustrate the unfairness of welfare.   The dole has long been deemed an unsavoury word - and it has been renamed " Newstart Allowance ".    It certainly is a big come down for anyone previously earning the average wage - and after retrenchment - expected to survive on just $ 35 a day - less than $ 250 a week.

Critics point out that this is $ 131 a week less than the old age pension.

But - and it is a very big " but " - the dole was never intended to replace the income from a job on a long term basis.    It is a temporary payment.   It is sheer survival money while the unemployed seek a new job  - and on that basis it's shortcomings are acknowledged.

It would be nice to equate the dole with the old age pension, but for some people this would remove the incentive of vigorously seeking fresh employment.   It would be too easy to lapse into a state of " semi retirement " at a much earlier age.

Whenever the question of welfare generally comes under review, we would be wise to take a reality check - and look at what is happening elsewhere - in the " real world " !