Introduction to Social Policy Analysis

Illuminating Welfare

Sinclair, Stephen

• Publisher: Policy Press
• Year: 2016
• ISBN:
  9781447313939
• Edition: 1
• Topic: Politics & International Relations
• Subtopic: Social Policy
• Index: Politics & International Relations

In this distinctive introduction Stephen Sinclair illuminates the subject of Social Policy by showing readers how Social Policy analysts think about welfare issues and policies. From what influences the decision to have children to how everyday terms such as 'youth crime' or 'poverty' reveal the structural processes shaping society, the book illustrates the insights which Social Policy analysis offers to understanding the social world and its problems. Written by an academic with extensive experience of teaching Social Policy analysis to new audiences, the book provides a stimulating introduction to the study of the factors and polices shaping wellbeing. Each chapter includes boxed summaries, applied examples illustrating key issues, and bullet points clarifying key concepts and theories.

FIVE

How does inequality persist? Social closure

Social closure: key points

•Income and wealth inequalities have widened and social mobility has declined in the UK and US, mostly due to large increases in the incomes of higher earners.

•Social closure refers to the various ways in which groups restrict access to scarce resources and opportunities.

•Advantages are maintained by opportunity-hoarding within exclusive networks and controlling different forms of capital.

Introduction

Inequalities of income and declining social mobility are troubling many people and shaping the political agenda as never before. President Barack Obama expressed his concern about a ‘relentless, decades-long trend’ in the US: ‘a dangerous and growing inequality and lack of upward mobility that has jeopardized middle-class America’s basic bargain – that if you work hard, you have a chance to get ahead’.¹ Similarly, all of the major British political parties express their commitment to promoting social mobility and claim to be concerned about growing inequalities of income and wealth. The former British Prime Minister John Major stated that his ambition was to make Britain a ‘classless society’.² His successor, Tony Blair, declared that his mission was ‘to break down the barriers that hold people back, to create real upward social mobility, a society that is open’.³ These sentiments were echoed by the UK Coalition government elected in 2010, with Prime Minister David Cameron and his Deputy Nick Clegg stating: ‘We both want a Britain where social mobility is unlocked; where everyone, regardless of background, has the chance to rise as high as their talents and ambitions allow them’.⁴

Types of inequality

It is important to distinguish between different forms of equality. In his 1754 Discourse on the Origin and Basis of Inequality, Jean-Jacques Rousseau distinguished between ‘natural’ inequalities, which individuals are born with, and ‘moral’ or ‘political’ inequalities, which are socially generated, such as inherited wealth. He argued that the former are unavoidable and add to the variety of life, but the latter might be objectionable if they involve unjustifiable advantages or discrimination.⁵

There are also several forms of social inequality:

•Equality of persons (or ontological equality) is the view that all human beings are fundamentally equal and share certain innate properties and inherent human rights. This is expressed in the American Declaration of Independence and enshrined in the United Nations Convention of Human Rights. This position would also require equal treatment of similar cases, so that social systems (such as the law) operate without favour or prejudice.

•Equality of opportunity ‘means that access to important social institutions should be open to all on universalistic grounds, especially by achievement and talent’.⁶ This is the idea that there should be a ‘level playing field’ in competition for particular positions – a position closely associated with support for social mobility.⁷

•Equality of conditions is the view that a genuinely level playing field between competitors requires an equal starting point, which means removing unfair advantages, such as the effects of inherited wealth or other unearned privileges. Creating equal starting conditions might require transforming the circumstances and social forces that generate inequality in the first place. This approach is associated with egalitarian ideas and accused by critics of favouring a levelling down and social uniformity.

•Equality of outcomes or result might require applying different policies to particular social groups to compensate for past inequalities of treatment or the denial of equal opportunities. An example of this would be positive discrimination measures designed to redress systemic disadvantages.

Few social reformers or Social Policy analysts advocate complete social uniformity.⁸ However, achieving equal treatment in welfare services (based on the belief in equal value) might require accommodating significant differences (eg removing barriers encountered by people with disabilities), which means that standardised provision for all might not be suitable.

Whether or not inequality is regarded as wrong also depends on judgements about rights (and principles of social justice) and fairness, which reflect beliefs about how society operates and what causes social outcomes.

The extent of social mobility is often taken as a measure of the equality of economic and social opportunity. High degrees of social mobility suggest an open and meritocratic society, where achievements reflect ability and effort rather than unfair advantages, such as inherited privilege or favouritism.⁹ There are also believed to be economic benefits to enabling competition for higher occupations. It has been estimated that if the UK had the same level of social mobility as the most open societies in the developed world, national income would increase by £150 billion each year, equivalent to gross domestic product (GDP) growth of 4%.¹⁰

However, there is growing evidence of widening inequalities and declining social mobility in several developed nations. It appears likely that, for the first time in decades, younger generations in many developed countries may have lower standards of living than their parents.¹¹ This has led to resentment and a questioning of the legitimacy of social and economic systems that do not seem to improve well-being, as shown by the Spanish Indignados protests, the sporadic Occupy movement and the emergence of radical and extremist political movements in several European countries.¹² It is important to consider how these developments relate to welfare policies and systems. The concept of ‘social closure’ is particularly useful to analyse these issues and illuminate how social inequalities are sustained and widened. However, it is first of all necessary to establish that there are, in fact, substantial and growing inequalities in income and opportunities in many societies.

Inequalities of income and opportunity

To understand and interpret the evidence on inequality, it is necessary to distinguish between income and wealth and also the situation at a particular point and trends over time. In assessments of equality, income refers to earnings from employment and other sources, such as dividends from stocks, shares or other investments, interest from deposits and bonds, rents received, and business profits. Income also includes state transfers, such as social protection benefits and tax credits. Marketable wealth includes assets that can be sold or converted into cash, such as stocks, shares and property. The largest marketable asset that most people own is residential property, usually their own home. Non-marketable wealth refers to assets that cannot be sold, the most important of which are pension entitlements. Including non-marketable assets in calculations of the distribution of wealth significantly influences estimates of inequality. For example, occupational pensions – often subsidised by tax exemptions – can widen inequality between higher- and lower-income households (see Chapter Three).

There are two striking features of inequality in recent years: first, the variation between countr...