Deconstructing the Laissez-Faire Legend: A Critical Analysis of the 1834 Poor Law Reform and Its Legacy

Abstract

This research paper critically examines the 1834 Poor Law Reform in Britain, a seminal event that is often heralded as a triumph of laissez-faire economics. The study delves into the historical context of the Old Poor Law system, established in 1601, which mandated legal support for individuals unable to sustain themselves. The paper scrutinizes the perceived problems of the Old Poor Law and the subsequent radical reforms introduced by the New Poor Law. It challenges the conventional narrative that the Poor Law Reform was a necessary corrective to an inefficient and market-distorting welfare system. Through a detailed analysis of the Poor Law Commission Report of 1834 and its criticisms, the paper reveals significant gaps in the arguments presented. The study also considers the impact of the Industrial Revolution, the Napoleonic Wars, and the gold standard restoration on the Old Poor Law system, arguing that these external factors played a crucial role in shaping the economic and social landscape of the time. This study offers insights into the complexities of policy marking and the interplay of economic theories and social needs. It underscores the enduring impact of historical decisions on contemporary economic and political dynamics and challenges the notion of post-WWII liberal order as a perpetuation of the laissez-faire myth.