Disadvantages of state sector Flashcards
State welfare is wasteful of money and human resources
Government can provide unlimited funding for the Welfare State its services are often poorly run and, without a profit motive, they do not use resources efficiently.
State welfare requires high taxes to be paid and as the country is faced with an ageing population, the government is having to pay for elderly care to more people over a longer period of time. This places an increased burden on tax payers.
Moreover, if welfare benefits are too generous it could lead to a poverty trap, with low paid workers being better off on benefits and also a dependency culture could develop
State welfare is not sensitive to the special needs of people
High demand placed on the Welfare State it cannot cope with the need to supply specialist care services to specific special needs groups. For example, elderly care and cancer care are often treated better by voluntary or private organisations as these can focus their resources and time on providing specialist care.
Moreover, state welfare services often suffer from long waiting lists as high demand means people often have to wait for a long time for a service or treatment. State services are also often subject to government interference with unrealistic targets being set and cuts in government spending reducing the provision and quality of services offered to the public.
