Government Spending & Welfare State Flashcards
Name 2 Government Spending
1) Public Goods
2) Merit goods
What is “public goods” ?
Those which cannot be provided by the private sector because they would not be profitable
Example: Defence, law and order, street lighting
What is “Merit goods” ?
Activities which have been taken over by the state because they are services which our society has decided that everyone is entitled
Example: Health and education (NHS, State School, Hospitals-Bupa)
Problems with “Merit goods”
If left to the market mechanism welfare state in the UK would not be provided in the right quantities or the right price so many people would not be able to afford these services
Define “ The welfare state”
Cover all the services and goods provided by the state, usually those which cannot, or world not be provided by the private sector
Name 4 Welfare in the UK
1) National Health Service
2) Education system
3) Housing Programme
4) Social security system
What does NHS offers?
The right to free medicine
What does “Education system” in welfare state aimed for?
It aimed to give every child a right to the very best education
What does “housing programme” in welfare state offers?
The right to a decent house or flat
To eliminate the slums
What does “Social security” system do?
1) Assist people who are living in poverty
2) Ensure people are not below the poverty line and out of absolute poverty
* *Currently, more people live under poverty line, during Christmas there were great demand from Food Bank
Define “Benefit” and give examples
Payments made by the government from taxation to those who meet the criteria established for each benefit. Examples: Funeral Payments Cold Weather Payment Maternity Allowance
What is “Universal benefits”?
State benefits to which all are entitled regardless of their level of income
Example: State pension, winter fuel payments
What is “Means-tested benefit”?
Payments made by the government only to people whose incomes are below a certain level
Example: Maternity pay
What is “Local benefits”?
Benefits that the local authority are responsible for
Example: Rutland
Housing benefit and Council tax benefit
For people on a low income who pay rent and council tax regardless of whether or no they are employed
