Without commenting too much on the details of the Federal Budget, many of which I have an opinion on, there is one aspect of its framing and delivery that, to put it mildly, got me rather cranky.
I am, along with many others I am sure, very tired of constantly hearing the term "working family" and what apparently qualifies you as one. There are many questions I have - if you are not a "working family" - then what are you? Is there a term that covers the rest of us? If you work ("working") and have a family ("family") - but you earn a high income - does that mean you suddenly are something else?
I really am quite confused and perplexed about this. I don't see why those who earn a high salary, drive a luxury car and own an expensive home should be punished for it. It's not as though they don't pay a price already through our tax system. Life isn't fair, but we shouldn't marginalise the "haves" just because they are wealthy - through inheritance, luck, hard work, or otherwise. They too have families to support and bills to pay.
There is no doubt that the gap between the rich and poor is getting wider, but is the introduction of means testing for welfare payments such as the baby bonus really going to bring us all closer together - or just reinforce a class divide and "us vs. them" mentality? I did not have a wealthy upbringing but I am sure many high income "working families" feel quite on the outer today - and understandably so.
I believe there are many less fortunate Australians that are in need of a hand. Not for a minute do I suggest that they shouldn't be offered the right support tools to help them lead a good lifestyle. What I don't think is healthy is for us to adopt an attitude that because you earn above a certain dollar figure you escape the responsibilities charter of the government.
Comments
so where do you draw the line?
OK, so where do you draw the line when it comes to income support. Should wealthy families be able to apply for all the other income supports made available to poor families?
Rather than responding to the fact, let's look at the principal. Are rich families really being punished by the means test of the baby bonus? or are poor families being rewarded for taking on the extra risks associated by having children given their precarious economic circumstances?
What is it that the baby bouns was created to achieve - an increase in the population.
Gen X are pretty bad at having kids, and Gen Y look like they are going to be even worse.
So Mr Costello decides to give a cash incentive, which by no means covers the cost of actually having a child, but for many it enabled women to take a few extra weeks or months off to spend with their infants before going back to work. It was after all a concession to the previous government's refusal to consider paid maternity leave.
Now - by slapping a means test on it we're effectively saying we aren't going to fund families who earn above a certain amount to have kids, not because we don't want them to have kids, but because they already have the funds to cover mum not working for a little while, or ever in many cases.
At the other side of the scale, the payment is being spread out rather than given in a lump sum, in an attempt to ensure it's spent on the well being of the child and not on drugs and plasma tv sets.
The question is - will means testing the baby bonus significantly reduce the number of kids born in Australia? Will it discourage rich families from having a family? Because if it does it will indeed work against the initial intent of the legislation. I don't think it will, have too much of an effect, but let's see.
It's been more politically motivated, in-so-far as pre-budget polls suggested the policy would win broad support, so the policy was adopted. That dosn't mean it's a good or bad idea, it just means it's not a vote loser.
I actually think the baby bonus is a silly short-term response to long term structural social problems which need to be addressed if we are going to actually improve the liklihood of people getting together an making families. Until we can figure out problems like the cost of houses, working arrangements, childcare offerings and access to education we're not going to really solve the problem.
Scrap the baby bonus, invest that money in affordable early childcare centres, massively increase the investment in public housing and create realistic family-friendly work practices and we'll start to see our 20-somethings gain the peace of mind they need to bring littlies into the world.
Root and branch reform
The more educated and financially independent women in any society become the fewer children they have and, in the long term, no amount of government social engineering is going to change that demonstrable fact. Of course the introduction of socialism, as tirelessly advocated by the previous commenter on this forum, would quickly impoverish the country and therefore increase the birthrate, but that seems a high price to pay. Remember when the population explosion was the big problem? How quickly things change.
Tinkering with means testing misses the real issue. What is needed is a root and branch reform of the taxation system. The introduction of a flat tax imposed at around 25% of all income above a healthy tax free allowance, with no exceptions or deductions would be simple, cheap to administer effective and raise revenue levels while acting as a great stimulus to economic growth. Such flat taxes have seen a host of countries in the formerly communist countries of Eastern Europe boom after decades of socialist stagnation and decay and countries such as the Baltic States are thriving with dynamism of which statist Australia can only dream. A thriving economy allows individuals to have, and more importantly care for, the families they want without recourse to government subsidy and control.
More radically the provision a 'citizens income' available to all is one idea to simplify the benefits system. This would be available for every adult to claim, in work or not, and would ensure that everybody had a basic standard of living regardless of their circumstances. There would be no poverty/benefit trap because the income would be claimable regardless of the person's working status. There would be no additional payments for any other reason. Radicalism means adopting new ideas, not rehashing the failed statist ideas of the nineteen sixties while truly progressive politics allow individuals to make their own destinies, rather than marshal their lives in tidy five year plans from an office in Canberra.
Regarding the means tested maternity benefit, it is usually true in the short term that where subsidies are offered, more of what is subsidised will be produced but that this will distort the economy and society to the detriment of all. Poorer and less educated women are more likely to have larger families earlier on than women with higher education and careers so, as family circumstances are a good predictor of a child's future educational and professional success, if one believed in producing a higher quality workforce then the Government would subsidise richer women to have more children and not pay poorer women at all. This wouldn't work in practice and is clearly absurd in principle, but the notion merely highlights the absurdity of the tax and benefit system.
The majority of tax is paid by better off workers, but if they are denied benefits available to those who pay little or nothing towards the upkeep of the nation then it is only natural that resentment against such unfairness will grow. Better off people will opt out of public provision entirely and then vote for parties which offer to cut their taxes, as they will see no benefit from them anyway. Britain has endured a dismal decade of tax and spend welfarism and authoritarian nanny state nagging and the Labour Government responsible now stands, broken, bloodied and abandoned even by its more rabid supporters in the press, twenty points behind in the polls with defeat at the next election a near certainty. Those who advocate a more statist turn might look at the examples of Britain - and France, Germany, Sweden and Italy - for the likely reaction of the long suffering public they seek so piously to champion.