More rights – less freedom – less welfare

Abstract

There are few concepts as popular and at the same time abused as that of ‘rights.’ Contemporarily the word ‘rights’ is used to refer to two totally different states of affairs: liberty rights (the right to freedom) and claim (social) rights. To say that basic needs justify both of these rights raises obvious doubts. And yet, even if we accept that the satisfaction of basic needs is justified in a particular welfare state, it cannot be regarded as justifiable in the version adopted by most welfare states today. Social rights are intellectually poorly justified and each serves as a rhetorical tool with which the development of a social state is justified. A growing social state impedes economic growth, particularly in poorer states, where it is the only mechanism which may end their poverty. The expansion of a social state pushes out more effective non-public mechanisms through which people in need receive assistance and help. It entails levying higher taxes, which in turn reduces the economic freedom of individuals and tends to have a negative impact on economic growth. Hence more social rights – less economic freedom – less welfare.