The Welfare State (1950)

From the June 1950 issue of the Socialist Standard

All the major political parties applaud the Welfare State. They vied with each other, during the election campaign, to claim credit for bringing it into existence. The Conservatives made the most of the fact that the government which set up the commission to inquire into the problem of reorganising the social services was a coalition Government predominantly Tory. The Liberals claimed their share of the glory because Sir William Beveridge, who gave his name to the report, was chairman of the Commission, and a Liberal. To the Labour Government was left the triumph of passing the legislation.

The truth about it all was that the so-called “Welfare State” arose not through the good will of any political party but because of the need to adapt the social services to the changing condition of capitalism. The need to allay any possible working class discontent after the war. Of course, it was a benefit to the health of the working class. That was another reason. To take advantage of post-war conditions and capture as many foreign markets as possible it was necessary to increase production. To do this a healthy efficient working class was needed.

But the capitalist class give with one hand and take back with the other.

The New Statesman and Nation, criticizing the Daily Mail's handling of the figures which led to the headline “Father Pays £34 9s. a year to Put Family of Four on the Panel,” makes some calculations of its own and comments:—

“This would make ‘fathers' payment for health services (Daily Mail calculation) around £23. or almost equal to the estimated benefit (Marshal Aid calculation) which a family receives under the scheme.”—(April 1st. 1950).

From these figures, as far as the health services are concerned, the working class are just getting what they pay for. The Economist in an article deals with the total social expenditure, and it quotes from the report of the E.C.A. Mission to the United Kingdom, “Facts about the British Economy.” Publishing a.table giving the Mission’s estimates The Economist writes: —

“The left-hand side of the table puts the total social expenditure for an average family—on the assumption that the population can be divided into families of four persons—at 57 shillings a week, including expenditure from the local rates and from the national insurance funds. The right-hand side of the table gives estimates of taxes paid by lower income families in 1948, taken as those with an income of under £500 in 1947. The total taxes estimated to be paid by such families who make up about 80 per cent. of the population, were larger than the whole of current social expenditure.” (The Economist, 1/4/50).

The socialist view is that the Welfare State won't abolish the poverty problem which confronts the working class out is just the best method the capitalist class have devised to distribute wages from the point of view of efficiency. When the Beveridge Report, the blue print of the Welfare State, was published, the Communist Party, the Labour Party, the Liberal Party and some sections of the Tories were in favour of it. The Socialist Party of Great Britain thought fit to publish a pamphlet putting forward the socialist view. It had the title “Beveridge Re-organises Poverty.” How right it was! The Economist thinks that way too. It later continues: —

“Since it is the lower income groups which benefit mainly from social expenditure the report says ‘the social expenditures are chiefly financed by transfers of income within the lower income group, in accordance with variations in the patterns of consumption, family size, etc., rather than by transfers between different income levels.’ ” (The Economist, I /4/50).

J. T.