I’m currently writing an article about the intimacy between neoliberalism and behavioural economics, following Richard Thaler’s recent Nobel award. While I was researching, I came across an Institute for Fiscal Studies (IFS) document about Nudge from 2012 – Tax and benefit policy: insights from behavioural economics, which suggested the introduction of “ordeals” into the social security system. The authors claim it would “deter fraud”. Although the IFS didn’t quite commit to calling for the idea to be implemented formally via policy, they did present the idea as an incontrovertible fact. Yet it is a controversial opinion, which is not supported by empirical evidence.
Introducing ordeals to social security also deters our most vulnerable citizens from claiming the support they need in order to live. Because of this, it wouldn’t be possible to determine the number of people who were intending to make a fraudulent claim. Prior to the welfare “reforms”…
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