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Encyclopedia > Welfare state
Part of the Politics series on
Social democracy
Precursors
The Age of Enlightenment
Utopian socialism
Trade Unionism
The Revolutions of 1848
Orthodox Marxism
Politics
Representative democracy
Labour rights
Civil liberties
Welfare state
Mixed economy
Secularism
Fair trade
Environmental protection
Organizations
Social democratic parties
Socialist International
Party of European Socialists
ITUC
Important figures
Eduard Bernstein
Hjalmar Branting
Friedrich Ebert
Jean Jaurès
Léon Blum
Karl Kautsky
Ignacy Daszyński
Ramsay MacDonald
Clement Attlee
Politics Portal ·  v  d  e 

There are three main interpretations of the idea of a welfare state: For other uses, see Politics (disambiguation). ... Social democracy is a political ideology emerging in the late 19th and early 20th centuries from supporters of Marxism who believed that the transition to a socialist society could be achieved through democratic evolutionary rather than revolutionary means. ... The Enlightenment (French: ; German: ; Italian: ; Portuguese: ) was an eighteenth century movement in European and American philosophy — some classifications also include 17th century philosophy (usually called the Age of Reason). ... Utopian socialism is a term used to define the first currents of modern Socialist thought. ... A trade union or labor union is an organization of workers. ... The European Revolutions of 1848, known in some countries as the Spring of Nations or the Year of Revolution, were a revolutionary wave which erupted in Sicily and then, further triggered by the revolutions of 1848 in France, soon spread to the rest of Europe and as far afield as... Orthodox Marxism is the term used to describe the version of Marxism which emerged after the death of Karl Marx and acted as the official philosophy of the Second International up to the First World War and of the Third International thereafter. ... Representative democracy is a form of government founded on the principles of popular sovereignty by the peoples representatives. ... Labor rights are laws created in order to always have fairness and keep peace between employees and employers. ... Civil liberties is the name given to freedoms that protect the individual from government. ... A mixed economy is an economy that has a mix of economic systems. ... This article is about secularism. ... For other uses, see Fair trade (disambiguation). ... Environmental movement is a term often used for any social or political movement directed towards the preservation, restoration, or enhancement of the natural environment. ... This is a list of parties in the world that consider themselves to be upholding the principles and values of social democracy. ... The official symbol of Socialist International. ... The Party of European Socialists (PES) is a European political party whose members are 33 social democratic, socialist and labour parties of the European Union member states as well as Norway. ... The International Trade Union Confederation (ITUC) is the worlds largest trade union federation. ... Eduard Bernstein Eduard Bernstein (January 6, 1850 - December 18, 1932) was a German social democratic theoretician and politician, member of the SPD, and founder of evolutionary socialism or reformism. ... Hjalmar Branting (November 23, 1860 – February 24, 1925) was a Swedish statesman and the countrys chief Social Democratic leader. ... This is not the Friedrich Ebert involved in the founding of the GDR, but rather his father. ... Jean Jaurès. ... Léon Blum Léon Blum (9 April 1872 - 30 March 1950), was the Prime Minister of France three times: from 1936 to 1937, for one month in 1938, and from December 1946 to January 1947. ... Karl Kautsky (October 16, 1854 - October 17, 1938) was a leading theoretician of social democracy. ... Ignacy Daszyński Ignacy Daszyński (1866-1936) was a Polish politician. ... James Ramsay MacDonald (12 October 1866 – 9 November 1937) was a British politician and three times Prime Minister of the United Kingdom. ... Clement Richard Attlee, 1st Earl Attlee, KG, OM, CH, PC (3 January 1883 – 8 October 1967) was Prime Minister of the United Kingdom from 1945 to 1951. ...

  • the provision of welfare services by the state.
  • an ideal model in which the state assumes primary responsibility for the welfare of its citizens. This responsibility is comprehensive[citation needed], because all aspects of welfare are considered; a "safety net" is not enough, nor are minimum standards[citation needed]. It is universal, because it covers every person as a matter of right.
  • the provision of welfare in society. In many "welfare states", especially in continental Europe, welfare is not actually provided by the state, but by a combination of independent, voluntary, mutualist and government services. The functional provider of benefits and services may be a central or state government, a state-sponsored company or agency, a private corporation, a charity or another form of non-profit organisation. However, this phenomenon has been more appropriately termed a "welfare society," and the term "welfare system" has been used to describe the range of welfare state and welfare society mixes that are found.[1]

Contents

For other uses, see State (disambiguation). ... This section may require cleanup to meet Wikipedias quality standards. ... The well-being or quality of life of a population is an important concern in economics and political science. ... The word citizen may refer to: A person with a citizenship Citizen Watch Co. ... Central government or the national government (or, in federal states, the federal government) is the government at the level of the nation-state. ... A state government (provincial government in Canada) is the government of a subnational entity in states with federal forms of government, which shares political power with the federal government or national government. ... For other uses, see Corporation (disambiguation). ... This article is about charitable organizations. ...

Etymology

The English term "welfare state" is believed to have been coined by Archbishop William Temple during the Second World War, contrasting wartime Britain with the "warfare state" of Nazi Germany.[2] The English language is a West Germanic language that originates in England. ... This article or section does not cite its references or sources. ... Mushroom cloud from the nuclear explosion over Nagasaki rising 18 km into the air. ... Nazi Germany, or the Third Reich, commonly refers to Germany in the years 1933–1945, when it was under the firm control of the totalitarian and fascist ideology of the Nazi Party, with the Führer Adolf Hitler as dictator. ...


In German, a roughly equivalent term (Sozialstaat, "social state") had been in use since 1870. There had been earlier attempts to use the same phrase in English, for example in Munroe Smith's text "Four German Jurists",[3] but the term did not enter common use until William Temple popularized it. The Italian term "Social state" (Stato sociale) has the same origin. (Edmund) Munroe Smith, (born 1854), was an American jurist and historian, born in Brooklyn. ...


The Swedish welfare state is called Folkhemmet and goes back to the 1936 compromise between the Union and big Corporate companies.It is a Mixed economy,build on strong unions and a strong system of Social security and universal health care. Swedish welfare refers to the Swedish variant of the mixed economy prevalent in much of the industrialized world. ... Folkhemmet, meaning the Peoples Home, as the idea of the Social Democratic welfare state played an important part in Sweden during the 20th Century. ... Union generally refers to two or more things joined into one, such as an organization of multiple people or organizations, multiple objects combined into one, and so on. ... Corporate may refer to either A corporation, a type of legal entity, often formed to conduct business Corporate (film), a 2006 Bollywood film starring Bipasha Basu. ... A company in the broadest sense is an aggregation of people who stay together for a common purpose. ... A mixed economy is an economy that has a mix of economic systems. ... Social security primarily refers to social welfare service concerned with social protection, or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. ... Universal health care is a situation in which all residents of a geographic or political region have access to most types of health care. ...


In French, the synonymous term "providence state" (État-providence) was originally coined as a sarcastic pejorative remark used by opponents of welfare state policies during the Second Empire (1854-1870). It has been suggested that this article or section be merged with pejoration. ... 1854 (MDCCCLIV) was a common year starting on Sunday (see link for calendar). ... 1870 (MDCCCLXX) was a common year starting on Saturday (link will display the full calendar) of the Gregorian calendar (or a common year starting on Monday of the 12-day slower Julian calendar). ...


In Spanish and many other languages, an analogous term is used: estado del bienestar; translated literally: "state of well-being".


In Portuguese, a similar phrase exists: Estado de Bem-Estar-Social; which means "well-being-social state".


The development of welfare states

An early version of the welfare state appeared in China during the Song Dynasty in the 11th century. Prime Minister Wang Anshi believed that the state was responsible for providing its citizens the essentials for a decent living standard. Accordingly, under his direction the state initiated agricultural loans to relieve the farming peasants. He appointed boards to regulate wages and plan pensions for the aged and unemployed. These reforms were known as the "new laws," New Policies, or xin fa. Northern Song in 1111 AD Capital Bianjing (汴京) (960–1127) Linan (臨安) (1127–1276) Language(s) Chinese Religion Buddhism, Taoism, Confucianism Government Monarchy Emperor  - 960–976 Emperor Taizu  - 1126–1127 Emperor Qinzong  - 1127–1162 Emperor Gaozong  - 1278–1279 Emperor Bing History  - Zhao Kuangyin taking over the throne of the Later Zhou... As a means of recording the passage of time, the 11th century was that century which lasted from 1001 to 1100. ... Wáng Ānshí (王安石) (1021 - 1086) was a Chinese economist, statesman and poet of the Song Dynasty who attempted some controversial, major socio-economic reforms. ...


Modern welfare states developed through a gradual process beginning in the late 19th century and continuing through the 20th. They differed from previous schemes of poverty relief due to their relatively universal coverage. The development of social insurance in Germany under Bismarck was particularly influential. Some schemes, like those in Scandinavia, were based largely in the development of autonomous, mutualist provision of benefits. Others were founded on state provision. The term was not, however, applied to all states offering social protection. The sociologist T.H. Marshall identified the welfare state as a distinctive combination of democracy, welfare and capitalism. Alternative meaning: Nineteenth Century (periodical) (18th century — 19th century — 20th century — more centuries) As a means of recording the passage of time, the 19th century was that century which lasted from 1801-1900 in the sense of the Gregorian calendar. ... (19th century - 20th century - 21st century - more centuries) Decades: 1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s As a means of recording the passage of time, the 20th century was that century which lasted from 1901–2000 in the sense of the Gregorian calendar (1900–1999... For specific national programs, see Social Security (United States), National insurance (UK), Social Security (Sweden) Social security refers to a variety of government programs providing for social welfare and social protection and the alleviation of poverty among senior citizens and the disabled. ... Bismarck redirects here. ... For other uses, see Scandinavia (disambiguation). ... Thomas Humphrey Marshall (1893-1981) is a British sociologist, most noted for his essays, such as the essay collection Citizenship and Social Class. ... ... For other uses, see Capitalism (disambiguation). ...


Examples of early welfare states in the modern world are Germany, all of the Nordic Countries, the Netherlands, Uruguay and New Zealand in the 1930s. Germany is generally held to be the first social welfare state. Changed attitudes in reaction to the Great Depression were instrumental in the move to the welfare state in many countries, a harbinger of new times where "cradle-to-grave" services became a reality after the poverty of the Depression. During the Great Depression, it was seen as an alternative "middle way" between communism and capitalism.[4] In the period following the Second World War, many countries in Europe moved from partial or selective provision of social services to relatively comprehensive coverage of the population. Political map of the Nordic countries and associated territories. ... The 1930s (years from 1930–1939) were described as an abrupt shift to more radical and conservative lifestyles, as countries were struggling to find a solution to the Great Depression, also known as the World Depression. ... For other uses, see The Great Depression (disambiguation). ... A boy from an East Cipinang trash dump slum in Jakarta, Indonesia shows what he found. ... Communism is an ideology that seeks to establish a classless, stateless social organization based on common ownership of the means of production. ... For other uses, see Capitalism (disambiguation). ... Mushroom cloud from the nuclear explosion over Nagasaki rising 18 km into the air. ... For other uses, see Europe (disambiguation). ... A social worker is a person employed in the administration of charity, social service, welfare, and poverty agencies, advocacy, or religious outreach programs. ...


The activities of present-day welfare states extend to the provision of both cash welfare benefits (such as old-age pensions or unemployment benefits) and in-kind welfare services (such as health or childcare services). Through these provisions, welfare states can affect the distribution of wellbeing and personal autonomy among their citizens, as well as influencing how their citizens consume and how they spend their time.[5][6]


After the discovery and inflow of the oil revenue, Saudi Arabia,[7][8] Kuwait, Qatar, Bahrain, Oman and the United Arab Emirates all became welfare states. However, the services are strictly for citizens and these countries do not accept immigrants; those born in these countries do not qualify for citizenship unless they are of the parentage belonging to their respective countries.


In the United Kingdom, the beginning of the modern welfare state was in 1911 when David Lloyd George suggested everyone in work should pay national insurance contribution for unemployment and health benefits from work. David Lloyd George, 1st Earl Lloyd-George of Dwyfor, OM, PC (17 January 1863 – 26 March 1945) was a British statesman who was Prime Minister throughout the latter half of World War I and the first four years of the subsequent peace. ...


In 1942, the 'Social Insurance and Allied Services' was created by Sir William Beveridge in order to aid those who were in need of help, or in poverty. Beveridge worked as a volunteer for the poor, and set up national insurance. He stated that 'All people of working age should pay a weekly national insurance contribution. In return, benefits would be paid to people who were sick, unemployed, retired or widowed.' The basic assumptions of the report were the National Health Service, which provided free health care to the UK. The Universal Child Benefit was a scheme to give child benefits, which encouraged people to have children so they could afford to keep them alive and not for them to starve to death. This was particularly useful after the second world war, where the population in England declined, so encouragement for new babies was encouraged, which sparked the baby boom. The impact of the report was huge and 600,000 copies were made. He recommended to the government that they should find ways of tackling the five giants, being Want, Disease, Ignorance, Squalor and Idleness. He argued to cure these problems, the government should provide adequate income to people, adequate health care, adequate education, adequate housing and adequate employment. Before 1939, health care had to be paid for, this was done through a vast network of friendly societies, trade unions and other insurance companies which counted the vast majority of the UK working population as members. These friendly societies provided insurance for sickness, unemployment and invalidity, therefore providing people with an income when they were unable to work. But because of the 1942 Beveridge Report, in 5th July 1948, the National Insurance Act, National Assistance Act and National Health Service Act came into force, thus this is the day that the modern UK welfare state was founded. William Henry Beveridge (March 5, 1879-1963) was a British economist and social reformer. ...


Debating the welfare state

The concept of the welfare state remains controversial, and there is continuing debate over governments' responsibility for their citizens' welfare. Here, it is crucial to clarify what exactly one means by welfare state. First, a welfare state is not a state run economy. The welfare state refers to the programs paid by the government that provide basic temporary and conditional finacial help to those legally unable to provide to themselves because of their current economic situation due to health problems, mental diseases, etc or because of a major natural disaster or terrorist attack.

Arguments in favor

  • humanitarian - the right to the basic necessities of life is a fundamental human right, and people should not be allowed to suffer unnecessarily through lack of provision.
  • altruism - helping others is a moral obligation in most cultures; charity and support for people who cannot help themselves are also widely thought to be moral choices.
  • utilitarian - the same amount of money will produce greater happiness in the hands of a less well-off person than if given to a well-off person; thus, redistributing wealth from the rich to the poor will increase the total happiness in society.
  • religious - major world religions emphasize the importance of social organization rather than personal development alone. Religious obligations include the duty of charity and the obligation for solidarity. However, before the welfare state in the UK, charitable donations were normally 10% of a persons income and the number of charities in the UK was enormous as was the amount of support given by them to the paupers. Therefore although this is fulfilled by a welfare state, it is actually a concept of welfare, not necessarily welfare provided by the state.
  • economic - social programs perform a range of economic functions, including e.g. the regulation of demand and structuring the labour market.
  • social - social programs are used to promote objectives regarding education, family and work.
  • market failure – in certain cases, the private sector fails to meet social objectives or to deliver efficient production, due to such things as monopolies, oligopolies, or asymmetric information.
  • social justice - the money the state provides comes from the nation's labor and natural resources through universal taxation, the rich manages the wealth that is often inherited, and do not necessarily contribute more than the average worker, therefore it is a matter of justice to provide for the private individual who cannot legally provide to himself. Further, there will also be members of societies who through disability, health problems, or other causes out of the individual's control, are unable to provide for themselves.
  • economies of scale - some services can be more efficiently paid for when bought "in bulk" by the government for the public, rather than purchased by individual consumers. The highway system, water distribution, the fire department, universal health, and national defense might be some examples.
  • anti-crime - people with low incomes do not need to resort to crime to stay alive, thus reducing the crime rate. Empirical evidence indicates that welfare programs reduce property crime.[2]

Arguments against There are a number of meanings for humanitarianism: humanitarianism, humanism, the doctrine that peoples duty is to promote human welfare. ... For the ethical doctrine, see Altruism (ethics). ... This article discusses utilitarian ethical theory. ... Various Religious symbols, including (first row) Christian, Jewish, Hindu, Bahai, (second row) Islamic, tribal, Taoist, Shinto (third row) Buddhist, Sikh, Hindu, Jain, (fourth row) Ayyavazhi, Triple Goddess, Maltese cross, pre-Christian Slavonic Religion is the adherence to codified beliefs and rituals that generally involve a faith in a spiritual... In modern usage, the practice of charity means the giving of help to those in need. ... Solidarity (Polish: ; full name: Independent Self-governing Trade Union Solidarity — Niezależny Samorządny Związek Zawodowy Solidarność) is a Polish trade union federation founded in September 1980 at the then Lenin Shipyards, and originally led by Lech Wałęsa. ... This article is about the human activity. ... For other uses, see Society (disambiguation). ... a family of Ouagadougou, Burkina Faso in 1997 Family is a Western term used to denote a domestic group of people, or a number of domestic groups linked through descent (demonstrated or stipulated) from a common ancestor, marriage or adoption. ... Wage labour is the socioeconomic relationship between a worker and an employer in which the worker sells their labour under a contract (employment), and the employer buys it, often in a labour market. ... Market failure is a term used by economists to describe the condition where the allocation of goods and services by a market is not efficient. ... This article is about the economic term. ... This article does not cite any references or sources. ... In economics, information asymmetry occurs when one party to a transaction has more or better information than the other party. ... Social justice refers to the concept of an unjust society that refers to more than just the administration of laws. ... The increase in output from Q to Q2 causes a decrease in the average cost of each unit from C to C1. ...

  • moral (compulsion)libertarians believe that the "nanny state" infringes upon individual freedom, forcing the individual to subsidize the consumption of others. They argue that social spending reduces the right of individuals to transfer some of their wealth to others, and is tantamount to a seizure of private property.
  • reduced morality – the introduction of the welfare state and benefits that support people who do not contribute to the national good, reduces the compulsion to contribute. Supporting single mothers with accommodation, benefits, rate rebates, etc slowly makes being a single mother a more acceptable life to lead despite the mounting evidence that it leads to depression in the mothers and children. Without a welfare state, families would be forced to support non-contributing members which would ensure children were given an upbringing which strongly discouraged this way of life.
  • religious/paternalism – some Protestant Christians and an increasing number of Catholics also believe that only voluntary giving (through private charities) is virtuous. They hold personal responsibility to be a virtue, and they believe that a welfare state diminishes the capacity of individuals to develop this virtue.
  • anti-regulatory - the welfare state is accused of imposing greater burdens on private businesses, of potentially slowing growth and creating unemployment.
  • efficiency - the free market leads to more efficient and effective production and service delivery than state-run welfare programs. They argue that high social spending is costly and must be funded out of higher levels of taxation. According to Friedrich Hayek, the market mechanism is much more efficient and able to respond to specific circumstances of a large number of individuals than when run by the state. An example of the inefficiency of the state is that in the UK, there is one non-teaching civil servant for every classroom in the country, whether they be administrators, managers, inspectors, etc.
  • motivation and incentives - the welfare state may have undesirable effects on behavior, fostering dependency, destroying incentives and sapping motivation to work.
  • charitable - by the state assuming a larger burden for the financial care of people, individuals may feel it is no longer necessary for them to donate to charities or give to philanthropies.
  • managerial statecraft - this paleoconservative view posits that the welfare state is part of an ongoing regime that remains in power, regardless of what political party holds a majority. It acts in the name of abstract goals, such as equality or positive rights, and uses its claim of moral superiority, power of taxation and wealth redistribution to keep itself in power.
  • Crime - state provided welfare normally incurs high tax economy, this in turn leads to people feeling protective over their earnings and therefore looking for ways to cheat the tax system to pay less tax. This in turn reduces overall morality. People dependent on welfare have been found by surveys to be more depressed and have a lower self esteem than working people, this in turn often leads to them feeling rejected, hopeless and/or abandoned by the populace at large, therefore they have a lower self of national unity of community responsibility and may turn to crime to get back at society or just fill the time.

Discussion of some of the criticisms See also Libertarianism and Libertarian Party Libertarian,is a term for person who has made a conscious and principled commitment, evidenced by a statement or Pledge, to forswear violating others rights and usually living in voluntary communities: thus in law no longer subject to government supervision. ... Nanny state is a derogatory term that refers to state protectionism, economic interventionism, or regulatory policies, and the perception that these policies are becoming institutionalized as common practice. ... Statue of Liberty - Liberty is one meaning of freedom. Freedom may mean any of the following: the British newspaper, Freedom in music: the 1989 album by Neil Young, Freedom a song by Rage Against the Machine a song by Richie Havens geographically: a town in New York, USA; Freedom a... In economics, a subsidy is generally a monetary grant given by a government to lower the price faced by producers or consumers of a good, generally because it is considered to be in the public interest. ... In economics, consumption refers to the final use of goods and services to provide utility. ... Religious is a term with both a technical definition and folk use. ... Image of traditional cultural paternalism: Father Junipero Serra in a modern portrayal at Mission San Juan Capistrano, California Paternalism refers usually to an attitude or a policy stemming from the hierarchic pattern of a family based on patriarchy, that is, there is a figurehead (the father, pater in Latin) that... Protestantism encompasses the forms of Christian faith and practice that originated with the doctrines of the Reformation. ... This article does not cite any references or sources. ... Friedrich August von Hayek, CH (May 8, 1899 in Vienna – March 23, 1992 in Freiburg) was an Austrian-born British economist and political philosopher known for his defense of liberal democracy and free-market capitalism against socialist and collectivist thought in the mid-20th century. ... Managerial State is a paleoconservative concept used in critiquing modern social democracy in Western countries. ... The term paleoconservative (sometimes shortened to paleo or paleocon when the context is clear) refers to an American branch of conservative Old Right thought that is frequently at odds with the current of conservative thought as espoused by the Republican Party elite. ...


Some criticism of welfare states concern the idea that a welfare state makes citizens dependent and less inclined to work. Certain studies indicate there is no association between economic performance and welfare expenditure in developed countries (see A. B. Atkinson, Incomes and the Welfare State, Cambridge University Press, 1995) and that there is no evidence for the contention that welfare states impede progressive social development. R. E. Goodin et al, in The Real Worlds of Welfare Capitalism (Cambridge University Press, 1999), show that on some economic and social indicators the United States performs worse than the Netherlands, which has a high commitment to welfare provision. However, the United States leads most welfare states on certain economic indicators, such as GDP per capita (although in 2006 it had a lower GDP per capita than Norway).[3] The United States also has a low unemployment rate (although not as low as Denmark, Norway) and a high GDP growth rate, at least in comparison to other developed countries (its growth rate, however, is lower than Finland's and Sweden's, two nations with relatively small populations but comparatively high commitments to welfare provision; the United States' growth rate is also lower than the world's overall).[4][5] The United States also leads most welfare states in the ownership of consumer goods. For example, it has more TV's per capita [6], more personal computers per capita [7], and more radios per capita [8] than what people would call welfare states. Wage labour is the socioeconomic relationship between a worker and an employer in which the worker sells their labour under a contract (employment), and the employer buys it, often in a labour market. ...


Another criticism comes from Classical Liberalism. Namely, that Welfare is theft of Property or Labor. This criticism is based upon classical liberalist ideals, wherein a citizen owns his body, and owns the product of his body's labor (i.e. goods, services, or money). Note that in this definition property that is inherited is not included. So to remove money through legal mechanisms set by a democratically elected assembly from the working or non-working citizen and give it to a non-working or handicapped citizen or to a child is argued to be theft of the worker's property and/or labor and a violation of his property rights.


A third criticism is that the welfare state allegedly provides its dependents with a similar level of income to the minimum wage. Critics argue that fraud and economic inactivity are apparently quite common now in the United Kingdom and France. Some conservatives in the UK claim that the welfare state has produced a generation of dependents who rely solely upon the state for income and support instead of working even though assistance is only given to those unable to work so that actually being able to work and instead relying on the state for income is a criminal offence. The welfare state in the UK was created to provide a carefully selected number of people with a subsistence level of benefits in order to alleviate poverty, but that as a matter of opinion has been overly expanded to provide a large number of people indiscriminately with more money than the country can afford. Some feel that this argument is demonstrably false: the benefits system in the UK hands out considerably less money than the national minimum wage, although people on welfare often find that they qualify for a variety of benefits, including benefits in-kind, such as subsidised accommodation which usually make the overall benefits much higher than figures show. On the other hand, benefits handed-out in the U.S. often exceed $10 an hour (varying state-to-state), when one accounts for all the free services provided (free housing, free food, free welfare checks), such that it's wiser economically not to work, rather than to accept $6 at the local retail store. One must not forget that even working families may be eligible for benefits when even when working their income does not cover their or their children's basic needs. Ths article deals with conservatism as a political philosophy. ...


A fourth criticism of the welfare state is that it results in high taxes. This is usually true, as evidenced by places like Denmark (tax level at 50.4% of GDP in 2002) and Sweden (tax level at 50.2% of GDP in 2002). Such high taxes do not necessarily mean less income for the nation overall, since the state taxes go directly to the people it is taxed from. The real issue is that they result in a major redistribution of that income from the citizens on the productive side of the equation to the citizens on the welfare state side. Thus the productive, self-reliant citizens subsidise the lifestyle of others.


A fifth criticism of the welfare state is the belief that welfare services provided by the state are more expensive and less efficient than the same services would be if provided by private businesses. In 2000, Professors Louis Kaplow and Steven Shafell published two papers, arguing that any social policy based on such concepts as justice or fairness would result in an economy which is Pareto inefficient. Anything which is supplied free at the point of consumption would be subject to artificially high demand, whereas resources would be more properly allocated if provision reflected the cost. However it is not clear how this would apply to services such as health and education, where individuals are unlikely to demand more services that are actually required, where the benefits of providing the service flow through to all levels of society (by reducing disease, and increasing the wealth-creation abilities of the population). Pareto efficiency, or Pareto optimality, is an important notion in neoclassical economics with broad applications in game theory, engineering and the social sciences. ...


The most extreme criticisms of states and governments, are from anarchists, who believe that all states and governments are undesirable and/or unnecessary. Most anarchists believe that while social welfare gives a certain level of independecy from the market and individual capitalists, it creates dependence to the state, which is the institution that, according to this view, supports and protects capitalism in the first place. Nonetheless, according to Noam Chomsky, "social democrats and anarchists always agreed, fairly generally, on so-called 'welfare state measures'" and "Anarchists propose other measures to deal with these problems, without recourse to state authority." [9] Anarchists believe in stopping welfare programs only if it means abolishing government and capitalism as well. [10] For other uses, see State (disambiguation). ... Anarchist redirects here. ... Avram Noam Chomsky (Hebrew: אברם נועם חומסקי Yiddish: אברם נועם כאמסקי) (born December 7, 1928) is an American linguist, philosopher, political activist, author, and lecturer. ...


The welfare state and social expenditure

% ‎of social expenditure over GDP in OECD states, 2001
% ‎of social expenditure over GDP in OECD states, 2001
Correlation between GDP (PPP) per catpia and welfare expenditure as a percentage of GDP.
Correlation between GDP (PPP) per catpia and welfare expenditure as a percentage of GDP.
Correlation between HDI score and welfare expenditure as a percentage of GDP.
Correlation between HDI score and welfare expenditure as a percentage of GDP.

Welfare provision in the contemporary world tends to be more advanced in the countries with stronger and more developed economies. Poor countries, on the other hand, tend to have limited social services. Within developed economies, however, there is very little correlation between economic performance and welfare expenditure.[11] Image File history File links No higher resolution available. ... Image File history File links No higher resolution available. ... The Organization for Economic Co-operation and Development (OECD) is an international organization of those developed countries that accept the principles of representative democracy and a free market economy. ... Year 2001 (MMI) was a common year starting on Monday (link displays the 2001 Gregorian calendar). ... Image File history File links No higher resolution available. ... Image File history File links No higher resolution available. ... Image File history File links No higher resolution available. ... Image File history File links No higher resolution available. ...


There are individual exceptions on both sides, but as the table below suggests, the higher levels of social expenditure in the European Union are not associated with lower growth, lower productivity or higher unemployment, nor with higher growth, higher productivity or lower unemployment. Likewise, the pursuit of free market policies leads neither to guaranteed prosperity nor to social collapse. The table shows that countries with more limited expenditure, like Australia, Canada and Japan, do no better or worse economically than countries with high social expenditure, like Belgium, Germany and Denmark. The table does not show the effect of expenditure on income inequalities, and does not encompass some other forms of welfare provision (such as occupational welfare). Overall, there is a slight positive correlation between increased spending on social services and higher GDP per capita as well as higher HDI rating. World map indicating Human Development Index (2006). ...


The table below shows, first, welfare expenditure as a percentage of GDP for some (selected) OECD member states, and second, GDP per capita (PPP US$) in 2001: The Organization for Economic Co-operation and Development (OECD) is an international organization of those developed countries that accept the principles of representative democracy and a free market economy. ...

Nation Welfare expenditure (% of GDP) GDP per capita (PPP US$)
Denmark 29.2 $29,000
Sweden 28.9 $24,180
France 28.5 $23,990
Germany 27.4 $25,350
Belgium 27.2 $25,520
Switzerland 26.4 $28,100
Austria 26.0 $26,730
Finland 24.8 $24,430
Netherlands 24.3 $27,190
Italy 24.4 $24,670
Greece 24.3 $17,440
Norway 23.9 $29,620
Poland 23.0 $9,450
United Kingdom 21.8 $24,160
Portugal 21.1 $18,150
Luxembourg 20.8 $53,780
Czech Republic 20.1 $14,720
Hungary 20.1 $12,340
Iceland 19.8 $29,990
Spain 19.6 $20,150
New Zealand 18.5 $19,160
Australia 18.0 $25,370
Slovak Republic 17.9 $11,960
Canada 17.8 $27,130
Japan 16.9 $25,130
United States 14.8 $34,320
Ireland 13.8 $32,410
Mexico 11.8 $8,430
South Korea 6.1 $15,090

Figures from the OECD[12] and the UNDP.[13]


Note: no data for China, India, Indonesia, Brazil, Russia, and Pakistan, who are not members of the OECD.


See also

A physician visiting the sick in a hospital. ... A mixed economy is an economy that has a mix of economic systems. ... NHS redirects here. ... Nationalization, also spelled nationalisation, is the act by which a nation takes possession of assets without requiring the owners consent, with or without payment of compensation. ... This article is about state ownership. ... This article does not adequately cite its references or sources. ... Social security primarily refers to social welfare service concerned with social protection, or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. ... social stratification is the division of people of a particular society on the basis if occupation, income, power, prestige, authority, status, dignity, education, class, castle, gender, race and ethnicity In sociology, social stratification is the hierarchical arrangement of social classes, castes and strata within a society. ... Social welfare redirects here. ... Social Workers are concerned with social problems, their causes, their solutions and their human impacts. ... The Swedish welfare is usually categorized as a middle way between a capitalist economy and a socialist economy. ... Folkhemmet, meaning the Peoples Home, as the idea of the Social Democratic welfare state played an important part in Sweden during the 20th Century. ... Corporate welfare is a pejorative term, first coined by Ralph Nader in 1956, describing a governments bestowal of grants and/or tax breaks on corporations or other special favorable treatment from the government. ... Social protection refers to a set of benefits available (or not available) from the state, market, civil society and households, or through a combination of these agencies, to the individual/households to reduce multi-dimensional deprivation. ... The fifth power, as a continuation of the series that begins with the three classical powers or branches of Montesquieus separation of powers (being the media a fourth power), can be understood since two points of wiev: The power exerted by governments in the economic sphere, thorough public sector...

References

  1. ^ Gould, Arthur (1993). Capitalist Welfare Systems. New York: Longman. ISBN 0-582-08349-4. 
  2. ^ Megginson, William L.; Jeffry M. Netter (June 2001). "From State to Market: A Survey of Empirical Studies on Privatization" (PDF). Journal of Economic Literature 39 (2): 321-389. ISSN 0022-0515. 
  3. ^ Smith, Munroe (December 1901). "Four German Jurists. IV". Political Science Quarterly 16 (4): 669. ISSN 0032-3195. 
  4. ^ "welfare state." O'Hara, Phillip Anthony (editor). Encyclopedia of political economy. Routledge 1999. p. 1245
  5. ^ Esping-Andersen, Gøsta (1999). Social Foundations of Postindustrial Economies. Oxford: Oxford University Press. ISBN 0-19-874200-2. 
  6. ^ Rice, James Mahmud; Robert E. Goodin, Antti Parpo (September-December 2006). "The Temporal Welfare State: A Crossnational Comparison" (PDF). Journal of Public Policy 26 (3): 195-228. ISSN 0143-814X. 
  7. ^ http://saudinf.com/main/h814.htm
  8. ^ http://www.mofa.gov.sa/Detail.asp?InSectionID=1516&InNewsItemID=1746
  9. ^ http://www.zmag.org/chomsky_repliesana.htm Noam Chomsky on anarchist support for 'welfare state' policies
  10. ^ [1]
  11. ^ Atkinson, A. B. (1995). Incomes and the Welfare State. Cambridge: Cambridge University Press. ISBN 0-521-55796-8. 
  12. ^ Organisation for Economic Co-operation and Development (OECD). "Welfare Expenditure Report" (Microsoft Excel Workbook), OECD, 2001. 
  13. ^ United Nations Development Programme (UNDP) (2003). "Human Development Indicators", Human Development Report 2003. New York: Oxford University Press for the UNDP. 
  • Stein Kuhnle Survival of the European Welfare State 2000 Routledge ISBN 041521291X

External links

Data and statistics

  • OECD - Health Policy and Data: Health Division Website
  • OECD - National Accounts: Statistics Portal

  Results from FactBites:
 
Welfare state - Wikipedia, the free encyclopedia (1662 words)
The sociologist T.H. Marshall identified the welfare state as a distinctive combination of democracy, welfare and capitalism.
Another criticism is that the welfare state often provides its dependents with a similar level of income to the minimum wage, encouraging benefit fraud and economic inactivity, especially common now in the UK and France.
They believe that the welfare state was created (In 1948 in the UK)to provide a carefully selected number of people with a subsistence level of benefits in order to alleviate poverty, but that it has been overly expanded to provide a large number of people indiscriminately with more money than the country can afford.
Welfare state - definition of Welfare state in Encyclopedia (951 words)
A welfare state is an ideal model where the state assumes primary responsibility for the welfare of its citizens.
Changed attitudes in reaction to the Great Depression were instrumental in the move to the welfare state in many countries, a harbinger of new times where "cradle-to-grave" services became a reality in contrast to the harsh mass-poverty of the Depression.
Welfare provision in the contemporary world tends to be more advanced in the countries with stronger and more developed economies; poorer countries generally have more limited welfare services.
  More results at FactBites »

 
 

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