The El Dorado of welfare

When the Soviet regime allowed some of its Jewish citizens to join close relatives in Israel, 85% of those allowed to leave were (according to Israel’s Prime Minister in the early 1980s) deflected to the El Dorado of the USA (and to less-attractive nations such as Australia). This is the power of economic opportunity.

In recent decades, beardless Middle Eastern men and niqab-free women paid large sums of money to ‘snake-heads’ to deliver them to the (no reciprocity of payment required) welfare regime of the El Dorado of Australia.

The extent of support for welfare (and attempts to widen its scope in Australia) is most impressive. While ‘other people’s money’ is a natural drawcard, what motivates those who recommend (even demand) widening and deepening welfare eligibility for others? Paying students to study maths at school is the latest thought-bubble of a poobah in education policy.

And, until recently, there was a strident demand from a sector of the community that Australia should take in more economic migrants claiming asylum – without regard to the UN Convention defining a refugee. Is it not curious that their wish to offer charity is circumscribed by the availability of taxpayer money?

A concealed form of welfare takes the form of tax subsidies to the well-off. The most interesting one is described as ‘wealth creation’ by Conservative politicians. The most flagrant form is through ‘negative gearing’ of investments in property. Costs – actual or staged – are deductible against income from any source; a most generous unintended gift by other taxpayers, who have to make up the deficit in government revenue, and who are unable to reduce their tax burden honestly.

Interestingly, an article by Jessica Irvine in the Sydney Morning Herald of 9 Feb. 2018, about a report by the Grattan Institute on Australia’s compulsory contribution by workers, suggests increasing rent assistance to vulnerable retirees.

What was the objective in establishing the ‘superannuation guarantee charge’? Was it not intended to progressively replace the age pension, which is now popularly regarded as a right, and which is a very heavy budgetary burden?

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