The Social Democratic Approach

The Social Democratic Approach argues that a capitalist society results in the need for a welfare state. The Social Democratic Approach believes that the capitalist system is wasteful and inefficient. Within this state, profit driven margins do not care for the elderly, poor or disabled who suffer as a result. The approach believes that the strong within society should support the weak. Therefore, they suggest that the government should intervene in the market in order to compensate the victims, redistribute income and provide opportunity for the under-privileged. This, they suggest would create greater social justice (s-cool.co.uk, 2012).

The Social Democratic Approach suggests that welfare is vital in order to regulate the undesirable effects of a capitalist society such as low wages and unemployment. They suggest that making benefits universal would help eliminate poverty as means testing fuels the poverty trap. Furthermore, they stress that selective benefits are both humiliating and beaurocratic and that people may avoid claiming what they can as they may be embarrassed. This contributes more to poverty. Means testing is seen by social democrats as a form of social control as it givens the state power over claimants (s-cool.co.uk, 2011).

Kenway’s study, ‘Addressing In-work Poverty’, showed a shocking relationship between those in low-paid employment and those in poverty. The study shows that in-work poverty’s ‘share’ of total child poverty was 50%, this however has now reached 58% since the study took place. The study argues that the creation of a system of free, universal childcare would help part-working families stay above the poverty line. Furthermore, cutting the levels of tax paid by low-income families would also help. Universal benefits, the study stresses, are vital as currently working tax credits lift around one million children out of in-work poverty every year. Moreover, a study by the Joseph Rowntree Foundation supports the evidence of Kenway’s study, showing that in 2012, 2.1 million impoverished children lived in homes were parents work.
 
The studies emphasise that even when working, poverty exists across families in Britain. This is a huge cause of welfare dependency even those who wish to work cannot as they earn more living on benefits, forcing them to become dependant. Lessening the amount low-income families have to pay in tax and the introduction of free, universal childcare may help families shift away from welfare dependency (Kenway.P, 2008).
The social democratic approach, in general, stress the need for welfare in today’s Capitalist society. They stress that within a capitalist state, welfare is needed to regulate the negative effects of capitalism such as low wages and unemployment. Also, the approach emphasises how the welfare system needs to be changed dramatically in order to support those living in poverty. Furthermore, universal benefits and cuts in the amount of tax paid by those on low incomes, social democratic’s believed, would benefit today’s poor as it would lessen the amount of people afftected by the benefit trap. Also, the Social Democratic Approach stresses that the government should intervene in the market to help those that have been affected by it and compinsate them.