UK spends more than £ 300 billion on welfare funding. Is it worth it? Well there are two sides of the coin always. Some cases where people are frequently taking welfare money makes us think that it is not worth. But on the other hand there are needy people who actually require help and go ahead in their lives because of this help. So what is the correlation with the economy as a whole?
The UK is a classical example of the natural tendency of an old prosperous nation to increase its social welfare spending. Spending more on welfare is seen by some economists as a sign of prosperity. But welfare spending in fact increases the tax burden, and will pressurize the country’s reserves in the long run. Norway is a good example of keeping balance between welfare and dynamic economy. It has equal participation of government and private in the economy and is doing well since long.
There is no one right answer. The Greek crisis is the effect of too much of welfare which has led to the EU having to bail out the country’s economy. It is an extreme case and a lesson for the others.
So what are the facts in UK? Well the welfare spending on pensions for old and disabled has increased a bit, but overall the figure is flat. There have been stricter rules to keep cheating away from the benefits. It has been quite effective and the reality is that UK is spending just the right amount on welfare. Spending on welfare has changed the mood of the economy and it is in the upswing. You did not know this, right!