Why would we want to create yet another black market?
This sounds odd to us:
Unemployed people will be blocked from spending their benefits on alcohol, cigarettes and gambling under plans set out by Kemi Badenoch.
Warning that welfare had become a “lifestyle choice for those who can’t be bothered”, the Conservative leader said the proposed reforms would be tough on those who “exploit” the system.
Under Tory plans, the long-term unemployed would have their benefits cut by a third. Cash handouts would be replaced with pre-paid “back-to-work cards” that would block spending on items, including alcohol, cigarettes and scratch cards.
Odd in the sense that we know this will create an immediate black market. As happens in the US where this system already operates - food stamps, SNAP, come on a card which can only be used to purchase a limited set of goods. So, the card holder hangs around near the till, approaches a likely looking and suggests that the card be used to buy the compliant shopping of the likely looking and the cash of the likely looking be used to buy what the card holder desires. The usual exchange rate is 50 cents on the dollar. We’ve certainly seen it claimed that the most common item bought at that 100% increase in price to the card holder is diapers - nappies to us. For food stamps are run by the Dept of Agriculture and diapers subsidise no farmers which is why they’re not available on the card. Which does lead to that interesting observation by US Census. Which is that precisely because what can be bought with SNAP is limited then the value to the recipients is less than the cost of providing it to them. The other description of such a process is “making us all poorer”.
Instananeous creation of yet another black market in Britian is not what we would recommend as a method of improving the nation.
There’s also that point that the list of things that cannot be bought will expand. Every nutter with a bonnetbee will fight tooth and nail to get onto that committee that decides upon the list of verboeten. We can imagine - do imagine - bans on steaks, upon nitrated meats, upon anything non-vegetarian and there will be someone who insists upon vegan only. No sugary drinks, obviously. You know, the standard list of today’s unfashionable items. And it will all be done by Lady Bountifuls insisting they are doing the proles a favour by denying said proles what they desire - Woolton Pie For All!
Cutting benefits, well, we’re open to bids on that. We certainly do think there needs to be a rather wider gap between what can be earned from working and what arrives without working. But this? No.
There’s also that liberal point. The beating heart of liberalism is that each individual knows their own desires better than anyone else. Thus allocating resources to meet desires is best done by said individual. Rather than, say, some distant committee of bonnetbee sufferers. So, we’d say this is profoundly illiberal and thus we’re agin’ it. How many resources those on benefits get to allocate is an interesting question, which allocation they make is for them.
And finally a little nagging feeling. Given our own positions as capitalist plutocrats we have not found it necessary to depend upon benefits over the years. We have though found that certain tough times have been immeasurably improved by the calm, considered, contemplation, getting outside of, of a pint of Old Wallop. We’re now to change the welfare system to deny this balm to the soul to the poor and unfortunate? Really?
Tim Worstall