Governments have tried many schemes to raise the living standards of the poor. Milton Friedman said they are like throwing dollars at a barn door in the hope that a few will go through the knot-holes. Indeed, if the welfare budget were simply divided up between the poor, they would all be rich.

The best welfare scheme ever devised is called a paying job. No government scheme has ever approached it. It brings not only income, but self-respect and a life outside. A single parent who stays home on welfare is a poor role model. Children might grow into 'inherited dependency.' A self-supporting parent who makes sacrifices for children is more likely to raise good citizens and achievers. A parent might prefer to stay at home, but cannot really expect others to pay for that preference. Taypayers might willingly pay to provide affordable child care, however.

Instead of raising taxes to pay for more welfare, government should be lowering them to create more jobs. A dramatic cut in the top rate would paradoxically help the poor more than the rich. The flood of new jobs it would create would do more for them than any welfare programme yet has.