Social services need to put less focus on income redistribution and universal coverage and greater emphasis on investing for the long term in vulnerable people, Daniel Mulino argues in a new book.
The government’s budget-constrained welfare system needs to put less focus on income redistribution and universal service and more emphasis on investing for the long term in vulnerable people, a federal Labor MP argues in a new book.
His international study of the history of the welfare state suggested better outcomes for vulnerable people and taxpayers were achieved when social insurance and risk management were the key objectives, ahead of income redistribution and universal coverage. “I think you’re going to get better outcomes where you’ve got that long-term investment in people and where you can invest over the lifecycle and not necessarily be constrained by the short term.”“For a given funding envelope, if there’s more choice I think you’re going to get better outcomes,” he said.
“One of the problems with universal service delivery is it can point you towards output delivery, and that’s the end of the story,” Dr Mulino said.“It’s not very good at understanding outcomes.”Dr Mulino said income redistribution was generally better achieved through progressive taxation, not the welfare system.
Dr Mulino said redistribution could be “arbitrary” or “subjective” because people’s circumstances changed during their lives.In a forward to the book, Mr Kelty said Mr Mulino had made the argument in the best tradition of the Hawke-Keating reforming Labor government in power between 1983 and 1996.
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