Pre-distribution (also written as
Predistribution[1][2][3]) is a
neologism[4] coined by
Yale University Professor
Jacob Hacker in a paper called
The Institutional Foundations of Middle Class Democracy published by the
think tank Policy Network[5]. Pre-distribution is the idea that the state should try to prevent inequalities occurring in the first place rather than ameliorating inequalities through the tax and benefits system once they have occurred as occurs under
redistribution.
[6]
In addition, the term 'predistribution' has been used (in the same sense as indicated above) by authors James Robertson and Joseph Huber in the book, 'Creating New Money' (New Economics Foundation, London, UK)
[citation needed] and, then, in various publications associated with the
Campaign for Co-operative Socialism (including a set of five articles published in Winter 2009/2010 by 'The CCPA Monitor' (the publication of the
Canadian Centre for Policy Alternatives,
[7] ) and then, in May 2010, as a collection: 'CCPA Readings on Co-operative Socialism'.
[citation needed]
[edit] Economic theory
![[icon]](http://upload.wikimedia.org/wikipedia/commons/thumb/1/1c/Wiki_letter_w_cropped.svg/20px-Wiki_letter_w_cropped.svg.png) | This section requires expansion. (September 2012) |
[edit] Influence on British politics
In the United Kingdom,
Labour Party leader
Ed Miliband has shown interest in the concept telling a
Policy Network seminar at the
London Stock Exchange that "Predistribution is about saying we cannot allow ourselves to be stuck with permanently being a low-wage economy".
[8] The concept has been seen as resulting from a recognition that were Labour to return to government they would not be able to reverse all Coalition cuts and implement traditional redistributive policies due to the poor state of the economy and instead need to focus on policies that make "work pay" for the poorest in society.
[9] Tristram Hunt, an influential Labour MP, called for predistribution in his chapter in
The Purple Book as a way to reform the economy whilst having fiscal restraint and fellow Purple Book contributor
Rachel Reeves used the term in a June 2012 Progress article.
[10] Lord Wood of Anfield , an adviser to
Ed Miliband, has argued that "pre-distribution" agenda is necessary because "In the face of rising inequality, declining social mobility and stagnating real wages for middle-income earners, there are limits to what redistribution can achieve on its own".
[11]
[edit] Criticism
There has been some criticism of whether predistribution is practical. BBC Political Correspondent Ian Watson argues that a predistributive policy might, for instance, require a business (when bidding for a government contract) to pay the
living wage rather than the
national minimum wage, something that may be difficult during times of
austerity although Watson's argument has been countered by the independent
Commission on Living Standards.
[12]
Some commentators have gone so far as to suggest that the concept of predistribution has simply been invented, and lacks any real substance
[13]. Neil O'Brien, director of the conservative think tank Policy Exchange, criticised the term 'pre-distribution' as "the sort of stupid made-up word that only a
policy wonk could love" before going on to say that the idea itself has some merit
[14]
[edit] See also
[edit] References
[edit] External links
![[icon]](http://en.wikipedia.org/wiki/File:Wiki_letter_w_cropped.svg){kind=small}
No comments:
Post a Comment