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The future of the welfare state is now firmly at the centre of public debate. Its seeming inability to conquer poverty,despite an annual budget of £100 billion, provokes many to question whether a system designed in the 1940′s is up to the challenges of today. The Adam Smith Institute argues that we need a completely different approach – replacing our collectivized state pensions and national insurance scheme with a system of personal lifetime fortune accounts, competitively provided.

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