Social mobility and incentives Print
Written by Jason Jones   
Wednesday, 25 June 2008

Gordon Brown said in a keynote speech on Monday:

More people need to adopt the work ethic and aim high in life… We must set a national priority to aggressively and relentlessly develop the potential of the British people.

As economists frequently point out, people respond to incentives. Gordon Brown and the Labour government’s policies over the last eleven years have decreased the incentives for a strong work ethic and given incentives for laziness. It is too easy nowadays to do very little and receive life’s necessities on a silver platter from the government. People who do earn well have to give so much of their income to taxes that there is a continuously smaller reward for work and education compared to that of the welfare state.

For too long, political demagogues in the United Kingdom (and elsewhere) have sought votes by telling the poor that they have no chance because the rich exploit them, that as the “people’s” representative, they’ll make the poor richer by making the rich poorer.

Empirical data shows that poor children who do well in their studies (even in state-schools) and obtain a university education will generally escape poverty. Now the government needs to give people responsibility for their own lives, allowing them to succeed if they do what is necessary, and not giving them a free ride if they do not. If work ethic and ambition “must [be] a national priority,” then Mr Brown needs to remove the incentive for laziness and let the incentives inherent in the free market return.

Comments (2)Add Comment
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written by Martin Jee, June 25, 2008
Hey ASI! News-release from the department of the blinding obvious: most people don't need "empirical data" to believe that "poor children who do well in their studies (EVEN IN STATE-SCHOOLS) will generally escape poverty".

Why the departure from your usual common-sense-based approach and tone? Last time I checked various British Prime Ministers, including Wilson and Heath off the top of my head, attended state schools, so I don’t see what they have done to deserve such a disparaging reference in this post.

Yours Disgruntledly,

Martin
Mayflower County High School alumini
You misunderstood...
written by Jason Jones, June 25, 2008
I was not in any way knocking state schools. Unfortunately, some people seem to think that going to a state-school means doom, and that a private education is necessary for success. On a side note, I went to state schools too.

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