Tag: economic Darwinism

State-regulated cryptocurrency and micro-managing people claiming welfare

blockchain_2-large_trans++LNxyO0DwVu6AfV8OD9VhqByRWR8tXKJRXAf-JOaUjFA


Context

I’ve written more than one critical piece about the Government’s part-privatised Behavioural Insights Team (Nudge Unit), particularly with regard to its insidious and malevolent influence, manifested in a range of psychoregulation policies aimed at “behavioural changes” which are being imposed on the poorest citizens. Technocracy is the “science of social engineering.” Nudge is a technocratic approach to fulfilling the requirements of neoliberalism. It’s about maintaining an established socioeconomic order, rather than advancing progressive social change.

In 1932, Howard Scott and Marion King Hubbert founded Technocracy Incorporated, and proposed that money be replaced by energy certificates. The group argued that “apolitical, rational engineers should be vested with authority to guide an economy into a thermodynamically balanced load of production and consumption, thereby doing away with unemployment and debt.” Sounds just like old school sociological Functionalism to me: it’s a systems theory  – utterly tautological and deterministic tosh. Bear with me, because there’s a couple of contemporary parallels I want to discuss.

The Conservatives prefer to do away with unemployment and debt by “incentivising behaviour change” to ensure that poor people who don’t have any money to live on are punished out of their poverty. 

Smart Cards, another antiwelfarist, technocratic imposition, entered our collective consciousness during autumn 2012, as Iain Duncan Smith declared his intention to discipline Britain’s “troubled” families. In unveiling his proposals at the Conservative Conference back in October 2012, Duncan Smith attempted to frame the cards as better value for taxpayers’ money, implying that poor people don’t pay taxes, (when the poorest actually pay proportionally more) and his rhetoric was extremely stigmatising.

He said: I am looking […] at ways in which we could ensure that money we give [benefit claimants] to support their lives is not used to support a certain lifestyle.”  [Boldings mine.]

Then MP Alex Shelbrooke presented his private member’s bill in December 2012, providing us with yet another shuddering glimpse into the underlying Tory moral outrage, prejudice and punitive attitudes towards people claiming benefits. He argued for a “welfare cash card” to limit spending to absolute basics. Isn’t welfare provision as it is just enough to cover the absolute basics for survival? It’s calculated to meet the basic cost of food, fuel and shelter only.

Despite his scapegoating narrative about addressing “idleness”, Shelbrooke’s proposed psychocompulsion was intended to apply to those in work, who claim benefits such as tax credits and housing benefit, penalising and outgrouping those on a minimum or low wage, also. The plan was to restrict the goods that people claiming benefits could buy with their cards. Not so much offering a “nudge” or “incentive”, but rather, delivering a bludgeoning enforcement, without a shred of respect for diverse needs and individuals’ autonomy and choice. 

A principled objection is that we should not be stigmatising or inflicting punishments on people, or reducing their freedom to spend money as they need and wish, just because they are forced to spend some time out of work, or because they aren’t paid a wage that is sufficient to live on. Such an approach is extremely draconian.

Having been previously rejected, this is certainly not a democratically endorsed policy.

This is an authoritarian restriction on what people claiming benefits may buy, and a limiting of lifestyle choices that they are permitted. It is a particularly spitefully directed ideological move that does not make any sense in terms of the wider economy, or in terms of any notion of “supporting” people, and “fairness.” The latter two categories of reason would entail extending opportunities and freedoms, not repressing them. 

Financial hardship already limits choice. When people are struggling financially, budgeting isn’t the problem: low wages, benefit cuts and rising costs of essential items are. Those factors are ultimately shaped by government policies, not poor people.

No matter how this is dressed up by the Tories, poor people don’t respond to “corrective” narratives and coercive policy like Pavlov’s dogs. Yet the Tories nevertheless insist on placing a psychopolitical variant of operant conditioning – behaviour modification – at the core of their increasingly repressive class-contingent policies. This isn’t about state “assistance” for the entitled poor, most of who have worked and contributed to the treasury, contrary to the politically expedient “economic free rider” label.  It’s about traditional Tory prejudices, state interference and coercion. It’s more blaming and punishing the casualities of neoliberalism and social conservatism. 

Having failed in introducing the punitive smart card more than once, the Conservatives are now resorting to a stealthy introduction of a variation to curtail the freedom of poor people claiming social security, using cryptocurrency, state regulation and an unprecedented, Orwellian level of state monitoring and control of what people who are struggling to make ends meet are buying. 

th

Some basic (but wordy) definitions

Cryptocurrency is a medium of exchange, alternative to Fiat currencies, which uses a type of virtual currency, such as bitcoin. It uses cryptography for security and anti-counterfeiting measures. Public and private keys are often used to transfer cryptocurrency between individuals. Ownership of bitcoins, for example, implies that a user can spend bitcoins associated with a specific address. To do so, a payer must digitally sign the transaction using the corresponding private key. Without knowledge of the private key, the transaction cannot be signed and bitcoins cannot be spent. The network verifies the signature using the public key.

Bitcoin is a pseudonymous currency, meaning that funds are not tied to real-world entities, but rather, to bitcoin addresses. For cryptocurrency enthusiasts, the pseudoanonymity element is attractive, as it tends to empower individuals rather than institutions. Cryptocurrencies typically feature decentralised and unregulated control, and transactions are recorded in a public distributed ledger called the blockchain. 

Owners of bitcoin addresses are not explicitly identified, but all transactions on the blockchain are public

The value of a cryptocurrency is determined by the market (whatever people are willing to pay for it). The welfare or state of your nation’s economy will not affect the value of your cryptocurrency. The value of a cryptocurrency is based solely on global supply and demand and functions much like a commodity on the stock market.

Cryptocurrencies are ordinarily used outside of existing banking and governmental institutions and exchanged over the Internet. They have often been seen by the establishment as a “rogue currency”, and as a potential threat to the monetary order. Because of the pseudoanonymity afforded by “virtual assets”, cryptocurrency is also sometimes used in controversial settings such as online darknet markets, like Silk Road, accessible by Tor, (free software for enabling anonymous communication, it conceals a user’s location and usage) which further minimises the risk of detection by law enforcement agencies. (See: Silk Road and Bitcoin.)

People in Russia and China have been bypassing very strict surveillance laws by using bitcoin-like cryptocurrencies in order to communicate securely. Cryptocurrencies, starting with bitcoin, have emerged and been increasingly utilised almost in parallel with revelations from National Security Agency (NSA) whistle-blower Edward Snowden about mass government surveillance. 

As the sheer extent of government spying still continues to emerge, encrypted communication services become important and have surged in popularity. Tech companies, including Facebook, Google and Apple, have capitalised on this by adding encryption to their services. However revelations that these same companies seem complicit in the NSA’s surveillance operations have led to some reservations from users. Now it seems the UK government wants to utilise cryptocurrency, inverting the political freedom it allowed by turning it into a tool of state control. 

Government proposals: virtual food vouchers and automated nudge

Earlier this year, the government set out proposals in a report regarding how Blockchain Technologies’ distributed ledger technology which provides “efficient and transparent” digital records of cryptocurrency transactions, could be used for public services. In their report called Distributed Ledger Technology: Beyond block chain, the government’s scientific advisor says:

“Distributed ledger technology (DLTs) offer significant challenges to established orthodoxy and assumptions of best practice, far beyond the recording of transactions and ledgers. These potentially revolutionary organisational structures and practices should be experimentally trialed — perhaps in the form of technical and non-technical demonstrator projects — so that practical, legal and policy implications can be explored.”

“Areas where we believe work could be taken forward include the protection of national infrastructure, reducing market friction for SMEs [Small and medium-sized enterprises] and the distribution of funds from Department for Work and Pensions and other government departments.” [Boldings mine.]

To recap, a distributed ledger is a database that can record financial, physical or electronic assets for sharing across a network through what is claimed to be entirely transparent updates of information.

Its first incarnation was Blockchain in 2008, which underpinned digital cash systems such as Bitcoin. The technology has now evolved into a variety of models that may be applied to different business problems.

Speaking at Payments Innovation Conference earlier this month, Lord Freud, one of the main architects of the welfare “reforms” said:

“Claimants are using an app on their phones through which they are receiving and spending their benefit payments. With their consent, their transactions are being recorded on a distributed ledger to support their financial management.”

The Department for Work and Pensions (DWP) has been working with Barclays, Npower, University College London and a UK-based distributed ledger platform startup called GovCoin to create an app which tracks people’s benefit spending

The ongoing trial which, is designed to demonstrate “the practical applications of the technology,” began in June. It’s yet another Conservative experiment on people claiming social security.

Jeremy Wilson, the vice chairman of corporate banking at Barclays, said: “This initiative focuses on adding an additional layer of richer data and identity onto payments, so that a deeper and more effective relationship can be established between the government and claimants.”

I wonder exactly what that “effective relationship” will entail? I bet it’s not one based on mutual respect and democratic dialogue. I also wonder if the Department for Work and Pensions will be issuing people who have no income with Smart phones. 

How will the collected information on spending be used? Are we going to see people claiming social security being named and shamed for buying Mars bars, a bottle of wine or a book? Or birthday and Christmas presents for their children? Will the state be sanctioning people that make purchases which the government deems “unnecessary”? 

He added: “We are keen to see how the positive potential of this service develops and adds to our wider efforts to explore the uses of distributed ledger technology.”

Distributed ledger technology was identified as a way of potentially “saving billions of pounds a year from welfare fraud and overpayment errors.”

Oh, that whoppingly over-inflated 0.7% of claimants again. Many of whom were simply overpaid as the result of an administrative error, after all. Just imagine how many trillions we would save if we used technology to get a grip of tax avoidance and tackle offshore tax havens, and addressing the “spending habits” of the hoarding wealthy. 

The technology is hoped to provide a cheap and easy way of getting welfare claimants without bank accounts into the system as well as verifying their identities, and would also provide a “transparent account of how public money was spent, transform the delivery of public services and boost productivity,” the government’s chief science adviser, Sir Mark Walport, said in a report last January. Those same words are used every time vulture capitalists are circling a public service, on the hunt for easy profits.

Walport said: “Distributed ledger technology has the potential to transform the delivery of public and private services.”  

More words from the vulture capitalist crib sheet of glittering generalities.

“It has the potential to redefine the relationship between government and the citizen in terms of data sharing, transparency and trust and make a leading contribution to the government’s digital transformation plan.”

The government distributes £3.8bn in payments every day. However, there are some serious concerns over how protection of data and privacy with the technology will be “managed.”

The Open Data Institute (ODI) welcomed the findings on the whole. However, it warned that the government must be wary of the challenges involved in blockchain technology and apply it in an effective way. They say: “We agree that blockchains could be used to build confidence in government services, through public auditability, and could also be used for widely distributed data collection and publishing, such as supply chain information. Smart contracts also hold great potential; what if your train tickets were smart contracts that meant you paid less for delayed trains?” 

Smart cards and smart contracts, the more things change, the more the Tories stay the same.

Further comment from the ODI: “However, in our research we have seen cases where people are trying to bolt old, failed or impossible policy and business ideas onto the new technology or to unnecessarily reinvent things that work perfectly well.”

The institute also warned of the privacy issues raised by incorporating private data and suggested the government better develop and solve these challenges by focusing on industry specific groups such as the finance or healthcare sectors.

Some thoughts

Conservatives claim to endorse personal responsibility, limited government, free markets, individual liberty, and deregulation, amongst other things. They believe the role of government should be to provide people the freedom necessary to pursue their own goals. Conservatives claim their policies generally emphasise “empowerment of the individual to solve problems”.

So how does any of this tally with harsh welfare cuts, public service cuts, restrictions on the right to by certain goods, the removal of access to legal aid, limiting housing options for the poorest, bedroom tax, numerous human rights contraventions, increasing conditionality for ill and disabled people, psychocompulsion through increasingly stringent welfare behavioural conditionality and the draconian sanction regime, for example?

Limiting consumer choice and spending flies in the face of the Tories’ own free market dogma. Furthermore, as it stands legally, the government cannot currently stipulate how people claiming benefits spend their money. So they would have to re-write the law to suit their “policy outcomes.” Again.

The Tory definition of “troubled family” conflates poverty, ill health, unemployment and criminality. Iain Duncan Smith claims to be targeting substance abusers (“drug addicts” and “alcoholics”) but it’s clear that the government’s definition means he’s referring largely to the poor and disabled people. His proposal to deal with people who don’t buy their children food because they’re “drug addicted” would actually target people who don’t buy food because they can’t afford it.

Once again we see the disciplinarian and psychocratic Tories stigmatising the poorest people for the conditions that Tory policies have caused. If such “troubled families” existed (and the Joseph Rowntree foundation research has put paid to the myth of  “families with three generations unemployed”), it would not be reasonable to treat their situations as an issue of personal spending choices rather than a consequence of how our economy is run.

The Tories have, over the past five years, parodied a political process that is supposed to be about engaging the publics’ rational, conscious minds, as well as facilitating their needs within society. The UK is not an inclusive democracy. Instead we see the employment of a behaviourist brand of psychocomplulsion, and the media are complicit in propping up an increasingly incoherent, irrational and profoundly prejudiced ideology which informs class-contingent, anti-social and deeply damaging neoliberal policies.

I’ve pointed out previously that government policies are expressed political intentions regarding how our society is organised and governed. They have calculated social and economic aims and consequences.

In democratic societies, citizen’s accounts of the impacts of policies ought to matter. “Accountability to the taxpayer” is being used more and more by the state as a justification to exclude those needing financial support from democratic society. Yet those people claiming benefits are not the same people year by year. The “economic free-rider” myth assumes that people claiming welfare do so continuously, yet we know that most move in and out of work, being forced to undertake insecure, poorly paid work regularly. It’s hardly fair to punish people for the detrimental conditions of the wider labor market.

In the UK, the way that policies are justified is being increasingly detached from their aims and consequences, partly because democratic processes and basic human rights are being disassembled or side-stepped, and partly because the government employs the widespread use of linguistic strategies and techniques of persuasion to intentionally divert us from their aims and the consequences of their ideologically (rather than rationally) driven policies. Furthermore, policies have become increasingly detached from public interests and needs. Instead, policy is about directing us in how to be. We are being coerced into behaving only in ways that accommodate and prop up neoliberalism.

Neoliberalism is a system of economic arrangements that greatly benefits a few powerful and wealthy people and impoverishes the majority of the public incrementally. As each social group reaches a crisis – struggling to survive – scapegoating narratives are constructed and disseminated via the media that blame them for their insolvency, creating socially divisive and politically managed categories of “others,” which serve to de-empathise the rest of the population and divert them from the fundamental fact that it isn’t the poor that create poverty: it is the neoliberal decision-makers and those who are steadily removing and privatising our public funds and ebulliently shrinking state responsibility towards citizens, leaving many at the mercy of “market forces” without a state safety net – it’s economic Darwinism.

“Workers of the World unite. You have nothing to lose but their blockchains.” Hubert Huzzah

 —

All despots and bullies are behaviourists. They inflict punishment on others to get the “outcomes” that they want. 

Governments are elected to reflect and accommodate public need. In the UK, the government expects the public to change their perceptions, expectations and behaviours to meet the government’s need. They say:

“Behaviour change is one of the primary functions of government communications – helping change and save lives, helping the government run more effectively as well as save taxpayer’s money.

Our approach is to use a mix of awareness raising, persuasion, practical help and behavioural theory, to demonstrate why changes in behaviour are important and to make these changes easy for the public to adopt”.

The Government Communication Service guide to communications and behaviour change

gcs-guide-to-communications-and-behaviour-change1

I don’t make any money from my work. But you can support Politics and Insights and contribute by making a donation which will help me continue to research and write informative, insightful and independent articles, and to provide support to others. The smallest amount is much appreciated, and helps to keep my articles free and accessible to all – thank you.

DonatenowButton
cards

The new Work and Health Programme: government plan social experiments to “nudge” sick and disabled people into work


Illustration by Jack Hudson

The government’s Nudge Unit team is currently working with the Department for Work and Pensions and the Department of Health to trial social experiments aimed at finding ways of: “preventing people from falling out of the jobs market and going onto Employment and Support Allowance (ESA).”

“These include GPs prescribing a work coach, and a health and work passport to collate employment and health information. These emerged from research with people on ESA, and are now being tested with local teams of Jobcentres, GPs and employers.”

This is a crass state intrusion on the private and confidential patient-doctor relationship, which ought to be about addressing medical health problems, and supporting people who are ill, not about creating yet another space for obsessive political micromanagement. It’s yet another overextension of the coercive arm of the state to “help” people into work. Furthermore, this move will inevitably distort people’s interactions with their doctors: it will undermine the trust and rapport that the doctor-patient relationship is founded on.

In the current political context, where the government extends a brutally disciplinarian approach to basic social security entitlement, it’s very difficult to see how the plans to place employees from the Department for Work and Pensions in GP practices can be seen as anything but a threatening gesture towards patients who are ill, and who were, up until recent years, quite rightly exempted from working. Now it seems that this group, which includes some of our most vulnerable citizens, are being politically bullied and coerced into working, regardless of the consequences for their health and wellbeing.

Of course the government haven’t announced this latest “intervention” in the lives of disabled people. I found out about it quite by chance because I read Matthew Hancock’s recent conference speech: The Future of Public Services.

I researched a little further and found an article in Pulse which confirmed Hancock’s comment: GP practices to provide advice on job seeking in new pilot scheme.

Hancock is appointed Minister for the Cabinet Office and Paymaster General, and was previously the Minister of State for Business and Enterprise. He headed David Cameron’s “earn or learn” taskforce which aims to have every young person earning or “learning” from April 2017.

He announced that 18 to 21-year-olds who can’t find work would be required to do work experience (free labour for Tory business donors) as well as looking for jobs or face losing their benefits. But then Hancock is keen to commodify everyone and everything, including public data.

However his references to “accountability and transparency” don’t stand up to much scrutiny when we consider the fact that he recently laid a statement before parliament outlining details about the five-person commission that will be asked to decide whether the Freedom of Information act is too expensive and “overly intrusive.”

He goes on to say: “And this brings me onto my second area of reform: experimentation. Because in seeking to improve our services, we need to know what actually works.”

But we need to ask for whom services are being “improved” and for whom does such reform work, exactly?

And did any of the public actually consent to being experimented upon by the state?

Or to having their behaviour modified without their knowledge?

Now that the nudge unit has been privatised, it is protected from public scrutiny, and worryingly, it is also no longer subject to the accountability afforded the public by the Freedom of Information Act.

The Tory welfare “reforms” are a big business profiteering opportunity, whilst lifeline benefits are being steadily withdrawn: policy context

The current frame of reference regarding Conservative welfare policies is an authoritarian and punitive one. It’s inconceivable that a government proposing to continue cutting the lifeline income of sick and disabled people, including a further £120 a month to those people in the ESA Work Related Activity group (WRAG), will suddenly show an interest in actually supporting disabled people. There are also proposals to further limit eligibility for Personal Independence Payments (PIP) for sick and disabled people. 

From the shrinking category of legitimate “disability” to forcing people to work for no pay on exploitative workfare schemes, “nudge” has been used to euphemistically frame punitive policies, “applying the principles of behavioural economics to the important issue of the transition from welfare to work.” (From: Employing BELIEF: Applying behavioural economics to welfare to work, 2010.)

And guess who sponsored the “research” into “nudging” people into workfare? Steve Moore, Business Development Director from esg, which is a leading welfare to work and vocational skills group, created through the merger and acquisition of four leading providers in the DWP and LSC sector.” How surprising.

It’s even more unsurprising that esg was established by two Conservative donors with very close ties to ministers, and were subsequently awarded very lucrative contracts with the Department for Work and Pensions. I think there may have been a “cognitive bias” in operation there, too. But who is nudging the nudgers?

Of course the “aim” of the “research” is: “breaking the cycle of benefit dependency especially for our hardest to help customers, including the “cohort” of disabled people.”

However, there’s no such thing as a “cycle of benefit dependency”, it’s a traditional Tory prejudice and is based on historically unevidenced myths. Poverty arises because of socioeconomic circumstances that are unmitigated through government decision-making. In fact this government has intentionally extended and perpetuated inequality through its policies.

2020health – Working Together is a report from 2012 that promotes the absurd notion of work as a health outcome.  This is a central theme amongst ideas that are driving the fit for work and the work and health and programme. Developing this idea further, Dame Carol Black and David Frost’s Health at Work – an independent review of sickness absence was aimed at reviewing ways of “reducing the cost of sickness to employers, ‘taxpayers’ and the economy.” Seems that the central aim of the review wasn’t a genuine focus on sick and disabled people’s wellbeing and “health outcomes,” then. Black and Frost advocated changing sickness certification to further reduce the influence of GPs in “deciding entitlement to out-of-work sickness benefits.”

The subsequent “fit notes” that replaced GP sick notes (a semantic shift of Orwellian proportions) were designed to substantially limit the sick role and reduce recovery periods, and to “encourage” GPs to disclose what work-related tasks patients may still be able to perform. The idea that employers could provide reasonable adjustments that allowed people who are on sick leave to return to work earlier, however, hasn’t happened in reality.

The British Medical Association (BMA) has been highly critical of the language used by the government when describing the fit for work service. The association said it was “misleading” to claim that fit for work was offering “occupational health advice and support” when the emphasis was on sickness absence management and providing a focused return to work.

The idea that work is a “health” outcome is founded on an absurd and circular Conservative logic that people in work are healthier than those out of work. It’s true that they are, however, the government have yet again confused causes with effects. Work does not make people healthier: it’s simply that healthy people can work and do. People who have long term or chronic illnesses often can’t work. The government’s main objection to sick leave and illness more generally, is that it costs businesses money. As inconvenient as that may be, politically and economically, it isn’t ever going to be possible to cure people of serious illnesses by cruelly coercing them into work.

The government’s removal of essential in-work support for disabled people – such as the Independent Living Fund, and the replacing of Disability Living Allowance  with Personal Independence Payment in order to reduce eligibility, cut costs and “target” support to those most severely disabled, and the cuts to the Access To Work scheme – means that it is now much more difficult for those disabled people who want to work to find suitable and supported employment.

The politics of punishment

There’s a clear connection between the Nudge Unit’s obsession with manipulating “cognitive bias” – in particular, “loss aversion” – and the increased use, extended scope and severity of sanctions, though most people succumbing to the Nudge Unit’s guru effect (ironically, another cognitive bias) think that “nudging” is just about prompting men to pee on the right spot in urinals, or persuading us to donate organs and to pay our taxes on time.

When it comes to technocratic fads like nudge, it’s worth bearing in mind that truth and ethics quite often have an inversely proportional relationship with the profit motive.

For anyone curious as to how such tyrannical behaviour modification techniques like benefit sanctions arose from the bland language, inane, managementspeak acronyms and pseudo-scientific framework of “paternal libertarianism” – nudge – read this paper, focused almost exclusively on New Right obsessions, paying particular attention to the part about “loss aversion” (a cognitive bias according to behavioural economists) on page 7.

And this on page 18: The most obvious policy implication arising from loss aversion is that if policy-makers can clearly convey the losses that certain behaviour will incur, it may encourage people not to do it,” and page 46: “Given that, for most people, losses are more important than comparable gains, it is important that potential losses are defined and made explicit to jobseekers (e.g.the sanctions regime).” 

The recommendation on that page: We believe the regime is currently too complex and, despite people’s tendency towards loss aversion, the lack of clarity around the sanctions regime can make it ineffective. Complexity prevents claimants from fully appreciating the financial losses they face if they do not comply with the conditions of their benefit.”

The Conservatives duly “simplified” sanctions by extending them in terms of severity, frequency and by broadening the scope of their application to include previously protected social groups.

The paper was written in November 2010, prior to the Coalition policy of increased “conditionality” and extended sanctions element of the Tory-led welfare “reforms” in 2012.

Sanctioning welfare recipients by removing their lifeline benefit – originally calculated to meet the cost of only basic survival needs – food, fuel and shelter – isn’t about “arranging choice architecture”, it’s not nudging: it’s operant conditioning. It’s a brand of particularly dystopic, psychopolitical neobehaviourism, and is all about a totalitarian level of micromanaging people to ensure they are obedient and conform to meet the needs of the “choice architects” and policy-makers.

Nudge even permeates language, prompting semantic shifts towards bland descriptors which mask power and class relations, coercive state actions and political intentions. One only need to look at the context in which the government use words like “fair”, “support”, “help” “justice” and “reform” to recognise linguistic behaviourism in action. Or if you prefer, Orwellian doublespeak.

It’s rather difficult to see how starving people and threatening them with destitution can possibly improve the well-being of many socially excluded people, and help to bring them to inclusion.”

The conclusion that Ancel Keys drew from the Minnesota Starvation Experiment in the the US during the 1940s, (which explored the physical and psychological effects of undernutrition, and stressed the dramatic, adverse effect that starvation had on competence, motivation, behaviour, mental attitude and personality) was that “democracy and nation building would not be possible in a population that did not have access to sufficient food.”

No amount of bland and meaningless psychobabble or intransigent, ideologically-tainted policies can legitimize the economic sanctioning of people who are already poor and in need of financial assistance.

Apparently, citizenship and entitlement to basic rights and autonomy is a status conferred on only the currently economically productive. Previous employment and contributions don’t count as “responsibility,” and don’t earn you any rights – the government believes that citizens owe a perpetual debt of unconditional service to the Conservative’s steeply stratified economy. Not much of a social contract, then. Cameron says he wants to “build a responsible society” by removing people’s rights and reducing or removing their lifeline income. Presumably, free invisible bootstraps are part of the deal.

Government decision-making has contributed the most significant influence on “health outcomes.” Conservative policies have entailed a vicious cutting back of support and a reduction of essential provision for sick and disabled people. In fact this group have been disproportionately targeted for austerity cuts time and time again, massively reducing their lifeline income. It’s not being “workless” that has a detrimental impact on people’s health and wellbeing: it is the deliberate impoverishment of those requiring state aid and support, funded from the public purse, (including contributions from those who now need support), which is being dogmatically and steadily withdrawn.

Making work pay for whom?

If work truly paid, then there would be no need to incentivise” almost 1.2 million low-paid workers claiming the new universal credit with the threat of in-work benefit sanctions if they fail to “take steps to boost their earnings.”

It’s very difficult to see how punishing individuals for perhaps being too ill to work more that a few hours, or those working for low pay or part-time in the context of a chronically weak labour market, depressed wages and with little scope for effective negotiating and collective bargaining can possibly be justified. It’s an utterly barbaric way for a government to treat citizens.

Surely if the government was genuinely seeking to increase choices and to widen access to the workplace for sick and disabled people, it would not be cutting the very programmes supporting and extending this aim, such as the Access to Work scheme  – a fund that helps people and employers to cover the extra living costs arising due to disabilities that might present barriers to work – and the Independent Living Fund.

This government has pushed at the public’s rational and moral boundaries, establishing and attempting to justify a draconian trend of punishing those unable to work, and what was previously unthinkable – stigmatising and punishing legally protected social groups such as sick and disabled people – has become somehow acceptable. We are on a very slippery slope, clearly mapped out previously by Allport’s scale of prejudice.

People’s needs don’t disappear just because the government has decided to “pay down” an ever-growing debt and build a “surplus” by taking money from those that have the least. Or because the government doesn’t like “big state interventions.”

So the recent proposed cut to ESA – and this is a group of sick and disabled people deemed physically incapable of work by doctors – is completely unjustified and unjustifiable. No amount of pseudo-psychology and paternalist cruelty can motivate or “incentivise” people who are medically ill.

It’s for disabled individuals and their doctors – professionals, specialists and experts – to decide if a person can work or not, it’s not the role of the state, motivated only by a perverse economic Darwinist ideology. Maslow taught us that we must attend to our physiological needs before we may be motivated to meet higher level psychosocial ones.

Iain Duncan Smith is a zealot who actually tries to justify further punitive cuts to disabled people’s provision by claiming that working is “good” for people and is the only “route out of poverty.”

Presumably he believes work can cure people of the serious afflictions that they erroneously thought exempted them from full-time employment. 

He stated: “There is one area on which I believe we haven’t focused enough – how work is good for your health. Work can help keep people healthy as well as help promote recovery if someone falls ill. So, it is right that we look at how the system supports people who are sick and helps them into work.”

Duncan Smith undoubtedly “just knows” that his absurd claim is “right.” He’s never really grown out of his “magical thinking” stage, or transcended his dereistic tendencies. His department had to manufacture “evidence” recently in a ridiculous attempt to support Iain Duncan Smith’s imaginative, paternalist claim that punitive sanctions are somehow “beneficial” to claimants, by using fake characters to supply fake testimonials, but this was rumbled and exposed by a well-placed Freedom of Information request from Welfare Weekly.

Recent research indicates that not all work serves to “keep people healthy” nor does it ever “promote recovery.” This assumption that work can promote recovery in the case of people with severe illness and disability – which is why people claim ESA – is particularly bizarre. We have yet to hear of a single case involving a job miracle entailing people’s limbs growing back, vision being restored, or a wonder cure for heart failure, cerebral palsy, multiple sclerosis and lupus, for example.

The government’s Fit for Work scheme is founded on exactly the same misinformative nonsense. It supports profit-making for wealthy employers, at the expense of the health and wellbeing of employees that have been signed off work because of medically and professionally recognised illness that acts as a real barrier to work.

Furthermore, there is no proof that work in itself is beneficial. Indeed much research evidence strongly suggests otherwise.

And where have we heard these ideas from Iain Duncan Smith before?

Arbeit macht frei.

If work really paid then surely there would be no need to “nudge” people by using sanctions, regardless of whether or not they are employed. “Making work pay” is all about reducing support for those who the government deems “undeserving,” to “discourage welfare dependency” by making any support as horrible as the workhouse – founded on the principle of “less eligibility”, where conditions for those in need of support were punitive and kept people in a state of desperation so that even the lowest paid work in the worst of conditions would seem appealing.

The public/private divide

For a government that claims a minarchist philosophy, remarkably it has engineered an unprecedented blurring of public/private boundaries and a persistent violation of traditionally private experiences, including thoughts, beliefs, preferences, autonomy and attitudes via legislations and of course a heavy-handed fiscal conflation of public interests with private ones.

This also caught my attention from Matthew Hancock’s speech transcript:

“My case is that we need continuous improvement in public services. And for that we must reform the relationship between citizen and state. [My bolding]

“The case for reform is strong. Because people have high and rising expectations about what our public services should deliver. Because budgets are tight, and we have to make significant savings for our country to live within her means.”

Basically, the “paternalistic libertarian” message here is that we will have to expect less and less from the state, as the balance between rights and responsibilities is heavily weighted towards the latter, hence requiring the “reform” of the relationship between citizen and state.

However, surely it is active, democratic participation in processes of deliberation and decision-making that ensures that individuals are citizens, not subjects.

Social democracy evolved to include the idea of access to social goods and improving living standards as a means of widening and legitimizing the scope of political representation.

Political policies are defined as (1) The basic principles by which a government is guided. (2) The declared objectives that a government  seeks to achieve and preserve in the interest of national community. As applied to a law, ordinance, or Rule of Law, it’s the general purpose or tendency considered as directed to the welfare or prosperity of the state or community.

Once upon a time, policy was a response from government aimed at meeting public needs. It was part of an intimate democratic dialogue between the state and citizens. Traditional methods of participating in government decision-making include:

  • political parties or individual politicians
  • lobbying decision makers in government
  • community groups
  • voluntary organisations
  • public opinion
  • public consultations
  • the media

Nowadays, policies have been unanchored from any democratic dialogue regarding public needs and are more about monologues aimed at shaping those needs to suit the government. 

Nudge does not entail citizen involvement in either its origin or design. The state intrusions are at such an existential level, of an increasingly authoritarian nature, and are of course reserved for the poorest, who are deemed “irrational” and incapable of making “the right decisions.”

Yet those “faulty decisions” are deemed so from the perspective of the Behavioural Insights Team, (the “Nudge Unit”) who are not social psychologists: they are predominantly concerned with behavioural economics, decision-making and how governments influence people – “economologists”, changing people’s behaviours, enforcing compliance to fulfil political aims. That turns democracy completely on its head.

The Nudge Unit gurus claim that we need help to “correct our cognitive biases”, but those who make policies have their own whopping biases, too.

Nudge is the new fudging

Nudge is a prop for New Right neoliberal ideology that is aimed at dismantling a rights-based society and replacing it with an insidiously nudged, manipulated, compliant, and entirely “responsible”, “self-reliant” population of divided, isolated state-determined individuals who expect nothing from their elected government.

The Conservatives are obsessive about strict social taxonomies and economic enclosures. The Nudge Unit was set up by David Cameron in 2010 to try to “improve” public services and save money. The asymmetrical, class-contingent application of paternalistic libertarian “insights” establishes a hierarchy of decision-making “competence” and autonomy, which unsurprisingly corresponds with the hierarchy of wealth distribution.

So Nudge inevitably will deepen and perpetuate existing inequality and prejudice, adding a dimension of patronising psycho-moral suprematism to add further insult to politically inflicted injury. Nudge is a fashionable fad that is overhyped, trivial, unreliable; a smokescreen, a prop for neoliberalism and monstrously unfair, bad policy-making.

As someone who (despite the central dismal and patronising assumptions about the irrationality of others that king nudgers have as a central cognitive bias and the traditional prejudices that Tory ideology narrates,) manages to make my own decisions relatively without bias, intelligently, rationally, critically, carefully and coherently, and that, along with my professional and academic background, I can and will conclude that no matter how you dress it up, nudge is a pretentious, cringeworthy pseudo-intellectual dead-end.

 A Nudge for the Conservatives from history

The more things change for the Tories, the more they tend to stay the same.

In the 1870s, England had a recession and the Conservatives launched a Crusade of cuts to welfare expenditure to diminish “dependency” on poor law outdoor relief – non-institutional benefits called “out-relief” because it was paid to the poor in their own homes from taxation, rather than their having to go into the punitive “deterrent” workhouses.

The Crusade included cutting medical payments to lone mothers, widows, the elderly, chronically sick and disabled people and those with mental illness. The 1834 Poor Law amendment was shaped by people such as Jeremy Bentham, who argued for a disciplinary, punitive approach to social problems and particularly poverty, whilst Thomas Malthus focused attention on overpopulation, and moralising about the growth of illegitimacy. He placed emphasis on moral restraint rather than poor relief as the best means of easing the poverty of the lower classes. 

David Ricardo argued that there was a problem with poor relief provision “interfering” with an iron law of wages. Ricardo claimed that aid given to poor workers under the old Poor Law to supplement their wages had the effect of undermining the wages of other workers, so that the Roundsman System and Speenhamland system led employers to reduce wages, and needed reform to help workers who were not getting such aid and rate-payers whose poor-rates were going to subsidise low-wage employers. Yet we found, despite Ricardo’s pet theory, that the poor law deterrent element served to push wages down further.

The effect of poor relief, in the absurd view of the reformers, was to undermine the position of the “independent labourer.” They also wanted to “make work pay.” And end the “something for nothing” culture. But much subsequent evidence shows that reducing support for people out of work actually drives wages and working conditions down.

Neither the punitive poor law amendment act of 1834 or the Crusade “helped” people into work or addressed the lack of available paid work – that’s unemployment, not the made-up and intentionally stigmatizing word “worklessness”.

And its utter failure as a credible account of poverty – the-blame-the-individual narrative and the notion that relief discourages “self-reliance” – fuelled the national insurance act of 1911 and the development of the welfare state along with the other civilising and civilised benefits of the post-war settlement. 

The Conservatives inadvertently taught us as a society precisely why we need a welfare state.

We learned that it isn’t possible to be “thrifty” or help ourselves if we haven’t got the means for meeting basic survival needs. Nor is it possible to be nudged out of poverty when the means of doing so are not actually available. No amount of moralising and pseudo-psychologising about poor people actually works to address poverty, and structural socioeconomic inequalities.

The government’s undeclared preoccupation with behavioural change through personal responsibility is simply a revamped version of Samuel Smiles’s bible of Victorian and over-moralising, a hobby-horse: “thrift and self-help” – but only for the poor, of course. Smiles and other powerful, wealthy and privileged Conservative thinkers, such as Herbert Spencer, claimed that poverty was caused largely by the irresponsible habits of the poor during that era. But we learned historically that socioeconomic circumstances caused by political decision-making creates poverty.

Conservative rhetoric is designed to have us believe there would be no poor people if the welfare state didn’t somehow “create” them. If the Tories must insist on peddling the myth of meritocracy, then surely they must also concede that whilst such a system has some beneficiaries, it also creates situations of insolvency and poverty for others.

In other words, the same system that allows some people to become very wealthy is the same system that condemns others to poverty.

This wide recognition that the raw “market forces” of the old liberal laissez-faire (and the current starker neoliberalism) causes casualties is why the welfare state came into being, after all – because when we allow such competitive economic dogmas to manifest, there are invariably winners and losers.

That is the nature of “competitive individualism,” and along with inequality, it’s an implicit, undeniable and fundamental part of the meritocracy myth and neoliberal script. And that’s before we consider the fact that whenever there is a Conservative government, there is no such thing as a “free market”: in reality, all markets are rigged for elites.

Public policy is not an ideological tool for a so-called democratic government to simply get its own way. Democracy means that the voices of citizens, especially members of protected social groups, need to be included in political decision-making, rather than so frankly excluded.

We elect governments to meet public needs, not to “change behaviours” of citizens to suit government needs and prop up policy “outcomes” that are driven entirely by traditional Tory prejudice and ideology.

And by the way, we call any political notion that citizens should be totally subject to an absolute state authority “totalitarianism,” not “nudge.”

demcracy
Courtesy of Robert Livingstone

Update: The government have since announced the introduction of a number of “policy initiatives” aimed at reducing the number of people claiming Employment and Support Allowance (ESA). These initiatives are currently still at a research and trialing stage. Health Management, a subsidiary of MAXIMUS are to deliver the fit for work programme, which was set up based on recommendations from the Health at Work – an independent review of sickness absence report by Dame Carol Black and David Frost. The review was aimed at “reducing the cost of sickness to employers, ‘taxpayers’ and the economy.”

Fit for Work occupational health professional will have access to people’s diagnoses from their fit notes, the fit note end date and any further information that the GP considers relevant to their absence from work or current treatment (at the discretion of the GP). The primary referral route for an assessment for the Maximus programme will be via the GP.

The government is cutting funding for contracted-out employment support by 80%, following the Spending Review. The Department for Work and Pensions has indicated that total spending on employment will be reduced, including not renewing Mandatory Work Activity and Community Work Placements, the new Work and Health Programme will have funding of around £130 million a year – around 20% of the level of funding for the unsuccessful Work Programme and Work Choice, which it will replace.

Iain Duncan Smith says: “This Spending Review will see the start of genuine integration between the health and work sectors, with a renewed focus on supporting people with health conditions and disabilities return to and remain in work. We will increase spending in this area, expanding Access to Work and Fit for Work, and investing in the Health and Work Innovation Fund and the new Work and Health Programme.” 

Meeting the Government’s goal of halving the employment gap between disabled and non-disabled workers – moving around one million more disabled people into work – will be no easy task. Not least because despite Iain Duncan Smith’s ideological commitments, and aims to “reduce welfare dependency,” most disabled people who don’t work (and claim ESA) can’t do so because of genuine and insurmountable barriers such as incapacitating and devastating, life-changing illness. No amount of targeting those people with the Conservative doublespeak variant of “help” and nasty “incentivising” via welfare sanctions and benefit cuts will remedy that.