Meik Wiking lives in Denmark, a country that is often rated with the happiest people. In his book, The Little Book of Hygge, he tries to give examples of how the Danes keep themselves happy. He mentions, but doesn’t go into, how living in a welfare state makes people happy.
“Interestingly, there is wide support for the welfare state. The support stems from an awareness of the fact that the welfare model turns our collective wealth into well-being. We are not paying taxes, we are investing in our society. We are purchasing quality of life. The key to understanding the high levels of well-being in Denmark is the welfare model’s ability to reduce risk, uncertainty and anxiety among its citizens and to prevent extreme unhappiness.” (Meik Wiking, The Little Book of Hygge, Penguin 2016, p. 13)
This small comment in a book made me pursue these thoughts. Over the years I have read many books and watched many talks that indicate that living in a more equal society is good for everyone.
Helen Pearson gave a talk at TED2017 where she discusses how to bring up children. “I came across a little secret that we have in Britain. It’s helped me become more confident about how I bring up my own children, and it’s revealed a lot about how we as a society can help all children.” (https://www.ted.com/talks/helen_pearson_lessons_from_the_longest_study_on_human_development/transcript)
What is the secret that she is talking about? Choose your parents very carefully; don’t be born into a poor or struggling family. But of course, we don’t actually choose our parents, so what can be done about this? She goes on to discuss how parental interaction with their children (listening to them, reading to them, doing things with them) influences whether the children do well when they are grown up. But what about children who are unlucky and grow up in home that is not supportive? Why should a child suffer because they weren’t able to choose the right parents?
We all have basic human needs that need to be satisfied, which include food, housing, clothing and social relationships. Most people in Europe and North America can no longer grow enough food to feed themselves and their family. This means that people must buy their food. The same goes for clothing and housing.
But where does the money come from? Many people have jobs that give them enough income to cover their needs and a lot more. But what about those who can’t work, for whatever reason? I was just reading a book about raising children and the author commented that children will do as well as they can and that they prefer to do well. I would also like to propose that people want to have a job and support themselves, if they can find a job that suits them.
Not everyone is born with the same advantages, as Helen Pearson tells us. I know people who have been born with poor health and have had great problems holding down a full-time job, not because they don’t want to, but because they don’t have the stamina for a full-time job. Some people are born handicapped, perhaps poor eye-sight, poor hearing or an inability to do intellectual work. People with manual jobs may get poor health early in life. These are the people that a welfare state can help.
In economic terms, there have been studies done that show that if everyone gets a basic income, those who can work, will work. This basic income can provide a buffer, so that it is easier to change jobs, take time off work to have children, to look after oneself and at least work part-time. Some people need a helping hand over a longer period of time, others for only a short time.
What happens to the money that the state gives to those who receive pensions, basic income or temporary support? People spend the money. The money gets recycled into the national economic system. Some of the money goes to buying goods such as food and clothing. Some of the money will go to renting housing or buying one’s own place. Much of the money gets recycled via various types of taxes so that some of the money ends up back in the government’s coffers.
What are the benefits of the welfare state? The main benefit is that there is a safety net available for everyone. If something goes wrong, you won’t starve to death. If you lose your job, you can get unemployment income while you look for a new job. If you get sick, your medical bills are paid. If you have a child that has a disability and needs full-time care at home, you will get a basic income so that one parent can be at home with the child. Education is free so that children from disadvantaged homes can also get an education that suits them, whether it is a trade education or an academic education. These are just a few examples.
In their book, The Spirit Level: Why Equality is Better for Everyone, (Penguin 2010), Richard Wilkinson and Kate Pickett document that the costs of inequality in a country include poorer mental health, higher drug use, lower life expectancy, more obesity, teenage births, more violence and lower social mobility. Countries that are welfare states are more equal. They even out these inequalities and everyone has a better life. One only has to look at the news about shootings at schools in the USA to realize that the inequality there is hurting everyone.
I live in Norway, which like Denmark, is a welfare state. I pay my taxes willingly, knowing that when I need to get help, help is there to be gotten.