New Right Explanations of Inequality Flashcards
New Right Explanations of Inequality:
Emphasis on Individuals
Individuals = Rational
- People should be responsible for their own life & economic gain
- Government should play a minimum role in society
- Government interference is the cause of social implications
New Right Explanations of Inequality:
Economic System
- Economic system worked best when based on a free market(Version of capitalism in which government interference is minimised & all activity = governed by laws of supply and demand)
New Right Explanations of Inequality:
Government that does the least = the best
Individuals & businesses do best when the government doesn’t interfere
- IN PRACTICE: Advocate policies
- De-regulation of business / industry
- Lowering of taxes
- Privatisation
New Right Explanations of Inequality:
Key Points & Theorists
Emphasis on Individuals
Government Policy
Saunders - Usefulness of Inequality
Galbraith - Trickle-down Theory
Underclass Theory
Murray - Culture of Welfare dependency
British Attitudes Survey Support
Chang / Wilson & Pickett Evaluation
New Right Explanations of Inequality:
Saunders - Inequality can be useful to society
- Economics that have large inequalities are very competitive & dynamic
- Acceptable trade off between social inequality & economic growth
New Right Explanations of Inequality:
SAUNDERS: Society based on social inequality…
Would be possible but only if considerable force was used
- Cohesive power will ensure everyone foes their jobs to the best of their abilities
- Society with complete equality - people are not motivated by reward
[Critical of the idea that the government should be pursuing equality of outcome as a political goal]
- Road to totalitarianism & undermines freedom / liberty
New Right Explanations of Inequality:
Galbraith
TRICKLE-DOWN THEORY
Inequality & the wealthy
If wealthy pay less tax & are able to make more profit, the money they spend will help stimulate the economy and allow them to create more jobs
- Society must look after the rich to raise the living standards for everybody
- Inspired Margaret Thatcher to slash top rate of income tax from 8% to 60% in 1979 & 40% by 1988
New Right Explanations of Inequality:
Underclass Theory
Working class & Inequality
CULTURAL DEPRIVATION - The poor have a deficient culture that acts as a barrier to success
CYCLE OF DEPENDENCY - The poor transmit poverty to their children through inadequate socialisation
New Right Explanations of Inequality:
Murray
Culture of welfare dependency:
Underclass are unwilling to work because they have become over reliant & dependent on state benefits
- Vicious cycle that exists within dependency culture
- Legitimate children with no male role models who are poorly socialised by single mothers are corroding generations of children
- Leads to an increase in crime & violence in society
New Right Explanations of Inequality:
British Social Attitudes Survey
N/R theories are supported by public opinions
- Observed hardening of attitudes towards welfare system
- 62% of respondents agree that unemployment benefits are too high & discourage work
- Public opinions are in favour of N/R policies toward welfare & poverty
New Right Explanations of Inequality:
Evaluation (- Theorists)
:( - Atmosphere of hostility aimed at those on welfare
- Results in sick & disabled being victimised & stigmatised by others in society & the benefits system
- Connotations surrounding individuals on welfare
- Media representation
:( - N/R are blaming the victims of social deprivation & inequality for their own misfortunes
:( - Trickle down theory: Little evidence to support trickle-down effect
New Right Explanations of Inequality:
Evaluation (Theorists)
CHANG - Trickle-down argument depends on the assumption that when given a larger national income, the rich will invest with it
- Assumption does not reflect reality: rich save more of their disposable income often offshore to avoid tax
- Growth slows down
WILSON & PICKETT - The spirit level
- As society has become more equal - tends to be less sympathy for the bottom of society
