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There are three main interpretations of the idea of a welfare state:

Contents

Etymology

The English term "welfare state" is believed by Asa Briggs to have been coined by Archbishop William Temple during the Second World War, contrasting wartime Britain with the "warfare state" of Nazi Germany. English is a West Germanic language originating in England and is the First language for most people in the United Kingdom, the United States Asa Briggs Baron Briggs (born 7 May 1921) is a British Historian, one of the most respected historians who has written on the Victorian era William Temple ( 15 October 1881 – 26 October 1944) was a priest in the Church of England. World War II, or the Second World War, (often abbreviated WWII) was a global military conflict which involved a majority of the world's nations, including Nazi Germany and the Third Reich are the common English names for Germany under the regime of Adolf Hitler and the National Socialist German Workers [2] Friedrich Hayek contends that the term derived from the older German word Wohlfahrtsstaat, which itself was used by nineteenth century historians to describe a variant of the ideal of Polizeistaat ("police state"). Friedrich August von Hayek CH ( May 8, 1899 March 23, 1992) was an Austrian British Economist It was fully developed by the German academic Sozialpolitiker—"socialists of the chair"—from 1870 and first implemented through Bismarck's "state socialism". [3] Bismarck's policies have also been seen as the creation of a welfare state. [4]

In German, a roughly equivalent term (Sozialstaat, "social state") had been in use since 1870. The German language (de ''Deutsch'') is a West Germanic language and one of the world's major languages. There had been earlier attempts to use the same phrase in English, for example in Munroe Smith's text "Four German Jurists",[5] but the term did not enter common use until William Temple popularized it. Edmund Munroe Smith ( December 8, 1854 &ndash April 13, 1926) was an American Jurist and Historian. The Italian term "Social state" (Stato sociale) has the same origin.

The Swedish welfare state is called Folkhemmet and goes back to the 1936 compromise between the Union and big Corporate companies. Swedish welfare refers to the Swedish variant of the Mixed economy Welfare state prevalent in much of the industrialized world Folkhemmet (the people's home is a political concept that played an important role in the history of the Swedish Social Democratic Party and the Swedish Welfare A trade union or labour union is an organization of workers who have banded together to achieve common goals in key areas such as wages hours and working conditions forming A corporation is a separate legal entity usually used to conduct business Generally a company is a form of Business organization. The precise definition varies It is a Mixed economy, built on strong unions and a strong system of Social security and universal health care. A mixed economy is an Economic system that incorporates aspects of more than one economic system Social security primarily refers to a Social insurance program providing social protection or protection against socially recognized conditions including poverty old Universal health care is health care coverage which is extended to all eligible residents of a governmental region

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). French ( français,) is a Romance language spoken around the world by 118 million people as a native language and by about 180 to 260 million people Words and phrases are pejorative if they imply disapproval or contempt Year 1854 ( MDCCCLIV) was a Common year starting on Sunday (link will display the full calendar of the Gregorian Calendar (or a Common year Year 1870 ( MDCCCLXX) was a Common year starting on Saturday (link will display the full calendar of the Gregorian calendar (or a Common

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". Portuguese ( or língua portuguesa) is a Romance language that originated in what is now Galicia (Spain and northern Portugal.

The development of welfare states

An early version of the welfare state appeared in China during the Song Dynasty in the 11th century. China ( Wade-Giles ( Mandarin) Chung¹kuo² is a cultural region, an ancient Civilization, and depending on perspective a National The Song Dynasty ( Wade-Giles: Sung Ch'ao was a ruling dynasty in China between 960&ndash1279 CE it succeeded the Five Dynasties and Ten Kingdoms Prime Minister Wang Anshi believed that the state was responsible for providing its citizens the essentials for a decent living standard. Background Under the Song Dynasty the unprecedented development of large estates whose owners managed to evade paying their share of Taxes resulted in an increasingly 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 (新法).

Modern welfare states developed through a gradual process beginning in the late 19th century and continuing through the 20th. The 19th century of the Common Era began on January 1, 1801 and ended on December 31, 1900, according to the Gregorian calendar The twentieth century of the Common Era began on 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. Social insurance is any Government -sponsored program with the following four characteristics the benefits eligibility requirements and other aspects of the program Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. Otto Eduard Leopold von Bismarck Count of Bismarck-Schönhausen Duke of Lauenburg Prince of Bismarck ( April 1, 1815 July 30, 1898) Some schemes, like those in Scandinavia, were based largely in the development of autonomous, mutualist provision of benefits. Terminology and usage As a cultural term "Scandinavia" has no official definition and is subject to usage by those who identify with the culture in question as well 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. Thomas Humphrey Marshall (1893-1981 is a British Sociologist, most noted for his essays such as the essay collection Citizenship and Social Class. Democracy is a form of government in which the supreme power is held completely by the people under a free electoral system "Social welfare" redirects here For other uses see Welfare A social welfare provision refers to any program which seeks to provide Capitalism is the Economic system in which the Means of production are owned by private Persons and operated for Profit and where

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, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. The Nordic countries make up a region in Northern Europe called the Nordic region, consisting of Denmark, Finland, Iceland, The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands Uruguay.(official full name in República Oriental del Uruguay;, Oriental Republic of Uruguay) is a country located in the southeastern part of South America New Zealand is an Island country in the south-western Pacific Ocean comprising two main landmasses (the North Island and the South Island The 1930s were described as an abrupt shift to more radical and conservative lifestyles as countries were struggling to find a solution to the Great Depression. 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. Poverty (also called penury) is deprivation of common necessities that determine the quality of life including food clothing shelter and safe Drinking water, and During the Great Depression, it was seen as an alternative "middle way" between communism and capitalism. Communism is a Socioeconomic structure that promotes the establishment of an egalitarian, classless, stateless Society based Capitalism is the Economic system in which the Means of production are owned by private Persons and operated for Profit and where [6] 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. World War II, or the Second World War, (often abbreviated WWII) was a global military conflict which involved a majority of the world's nations, including Social work is a discipline involving the application of Social theory and research methods to study and improve the lives of people groups and societies

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. [7][8]

After the discovery and inflow of the oil revenue, Saudi Arabia,[9][10] Kuwait, Qatar, Bahrain, Oman and the United Arab Emirates all became welfare states. The Kingdom of Saudi Arabia, KSA ( المملكة العربية السعودية, al-Mamlaka al-ʻArabiyya as-Suʻūdiyya) or Suudi The State of Kuwait ( دولة الكويت IPA [dawlatt̪ alkuwajt̪]) is a sovereign Arab Emirate on the coast of the Persian Gulf, enclosed Qatar ( قطر; ˈqɑtˁɑr local pronunciation giṭar officially the State of Qatar (Arabic دولة قطر transliterated The Kingdom of Bahrain (in مملكة البحرين,, literally Kingdom of the Two Seas) is an Island country in the Persian Gulf Oman, officially the Sultanate of Oman ( Arabic: سلطنة عُمان) is an Arab Country in Southwest Asia on the southeast 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 &ndash 26 March 1945 was a British Statesman and the only

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. For the Scottish footballer and athlete see William Beveridge (footballer William Henry Beveridge 1st Baron Beveridge ( 5 March 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 benefits to parents, encouraging people to have children by enabling them to feed and support a family. This was particularly beneficial after the second world war when the population of the United Kingdom declined. Universal Child Benefit provided encouragement for new babies, which sparked the Baby boom. A baby boom is any period of greatly increased birth rate during a certain period and usually within certain geographical bounds and when the birth rate exceeds 2% of the population 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.

Effects on poverty

Empirical evidence suggests that taxes and transfer considerably reduce poverty in all developed countries, whose welfare states commonly constitute at least a fifth of GDP. [11][12]

Country Absolute poverty rate
(threshold set at 40% of U. S. median household income)[11]
Relative poverty rate[12]
Pre-transfer Post-transfer Pre-transfer Post-transfer
Sweden 23. "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. 7 5. 8 14. 8 4. 8
Norway 9. Norway ( Norwegian: Norge ( Bokmål) or Noreg ( Nynorsk) officially the Kingdom of Norway, is a Constitutional 2 1. 7 12. 4 4. 0
Netherlands 22. The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands 1 7. 3 18. 5 11. 5
Finland 11. Finland, officially the Republic of Finland ( is a Nordic country situated in the Fennoscandian region of northern Europe. 9 3. 7 12. 4 3. 1
Denmark 26. The Kingdom of Denmark ( ˈd̥ænmɑɡ̊ (archaic ˈd̥anmɑːɡ̊ commonly known as Denmark, is a country in the Scandinavian region of northern Europe 4 5. 9 17. 4 4. 8
Germany 15. Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. 2 4. 3 9. 7 5. 1
Switzerland 12. Switzerland (English pronunciation; Schweiz Swiss German: Schwyz or Schwiiz Suisse Svizzera Svizra officially the Swiss Confederation 5 3. 8 10. 9 9. 1
Canada 22. Country to "Dominion of Canada" or "Canadian Federation" or anything else please read the Talk Page 5 6. 5 17. 1 11. 9
France 36. This article is about the country For a topic outline on this subject see List of basic France topics. 1 9. 8 21. 8 6. 1
Belgium 26. The Kingdom of Belgium is a Country in northwest Europe. It is a founding member of the European Union and hosts its headquarters as well as those 8 6. 0 19. 5 4. 1
Australia 23. For a topic outline on this subject see List of basic Australia topics. 3 11. 9 16. 2 9. 2
United Kingdom 16. The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located 8 8. 7 16. 4 8. 2
United States 21. The United States of America —commonly referred to as the 0 11. 7 17. 2 15. 1
Italy 30. Italy (Italia officially the Italian Republic, (Repubblica Italiana is located on the Italian Peninsula in Southern Europe, and on the two largest 7 14. 3 19. 7 9. 1

Debating the welfare state

The concept of the welfare city 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. A welfare state is not a state run economy. The welfare state refers to government provision of certain public services (such as health care, education or social security) to all citizens irrespective of their personal wealth. Health care is the prevention treatment and management of illness and the preservation of mental health through the services offered by the medical, Nursing Education encompasses both the Teaching and Learning of Knowledge, proper conduct, and technical competency Social security primarily refers to a Social insurance program providing social protection or protection against socially recognized conditions including poverty old It also refers to government provision of money or other financial assistance - often temporary or conditional - to those legally unable to provide to themselves because of health problems, unemployment, mental diseases, or 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. Humanitarianism is an active belief in Humanism (the idea of the value of human life whereby Humans practice benevolent treatment and provide assistance to other humans
  • 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. Altruism is selfless concern for the welfare of others It is a traditional Virtue in many cultures and central to many religious traditions
  • 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. Utilitarianism is the idea that the moral worth of an action is solely determined by its contribution to overall Utility, that is its contribution to happiness
  • religious - major world religions emphasize the importance of social organization rather than personal development alone. A religion is a set of Tenets and practices often centered upon specific Supernatural and moral claims about Reality, the Cosmos Religious obligations include the duty of charity and the obligation for solidarity. Etymology The word "charity" entered the English language through the Old French word " charité " which was derived from the Many religious people feel that a welfare state reflects such values and creates a just society.
  • economic - social programs perform a range of economic functions, including e. An economy is the realized social system of production exchange distribution and consumption of goods and services of a country or other area g. the regulation of demand and structuring the labour market.
  • pragmatic - the provision of 'free' healthcare and education produces a healthier, more skilled labour force than would otherwise be the case. This results in a greater benefit in terms of increased productivity than the cost in increased taxes.
  • social - social programs are used to promote objectives regarding education, family and work. A society is a Population of Humans characterized by patterns of relationships between individuals that share a distinctive Culture and Institutions Education encompasses both the Teaching and Learning of Knowledge, proper conduct, and technical competency Family denotes a group of People affiliated by consanguinity affinity or co-residence Wage labour is the socioeconomic relationship between a worker and an employer in which the worker sells their labour under a Contract ( Employment
  • 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. Market failure is a concept within economic theory wherein the allocation of goods and services by a Free market is not efficient. In Economics, a monopoly (from Greek monos, alone or single + polein, to sell exists when a specific individual or enterprise has sufficient An oligopoly is a Market form in which a Market or Industry is dominated by a small number of sellers (oligopolists In Economics and Contract theory, information asymmetry deals with the study of decisions in transactions where one party has more or better 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. Social justice, sometimes called civil justice, refers to the concept of a Society in which Justice is achieved in every aspect of society rather than 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. [1]

Arguments against

  • moral (compulsion)libertarians believe that the "nanny state" infringes upon individual freedom, forcing the individual to subsidize the consumption of others. Libertarianism is a term used by a broad spectrum of political philosophies which prioritize individual Liberty and seek to minimize or even abolish the Nanny state is a Derogatory term that refers to state Protectionism, Economic interventionism, or regulatory policies and the perception that In Economics, a subsidy (also known as a subvention is a form of financial assistance paid to a business or economic sector In economics consumption is the primary motivating force in the wealth or utility maximizing paradigm 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.
  • religious/paternalism – some Protestant Christians believe that only voluntary giving (through private charities) is virtuous. A religion is a set of Tenets and practices often centered upon specific Supernatural and moral claims about Reality, the Cosmos 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 Protestantism refers to the forms of Christian faith and practice that originated in the 16th century Protestant Reformation. 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. Unemployment occurs when a person is available to work and currently seeking work but the person is without work.
  • efficiency - the free market would provide more efficient and effective production and service delivery than state-run welfare programs. Social spending is costly and must be funded out of higher levels of taxation.
  • motivation and incentives - the welfare state may have undesirable effects on behavior, fostering dependency, destroying incentives and sapping motivation to work. [13]
  • 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. Managerial state is a Paleoconservative concept used in critiquing modern Social democracy in Western countries Paleoconservatism (sometimes shortened to paleo or paleocon when the context is clear is a term for an anti-communist and Anti-authoritarian 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. In the sociological field, crime is the breach of a rule or Law for which some governing authority or force may ultimately prescribe a Punishment It is also argued that people dependent on welfare may have lower self esteem than working people, which can lead to them feeling rejected, hopeless and/or abandoned by the populace at large, which can in turn lead to crime.
  • abuse - it is argued that state provided welfare benefits often finish by being fraudulently claimed by those who are not in real need. Abuse refers to the use or treatment of something (a person item substance concept or vocabulary that is harmful To counter this effect, more and more requirements are introduced for welfare claimants to prove their eligibility to obtain benefits. Thus results in creating complex and costly bureaucratic procedures whose effect is often adverse to the desired - the poor and needy persons who are not able to do the required paperwork are left behind while others get specialized in overcoming the bureaucratic hurdles (often by fraud or bribery) and claiming the benefits. In the broadest sense a fraud is a Deception made for personal gain or to damage another individual Bribery, a form of pecuniary corruption is an act usually implying money or gift given that alters the behaviour of the recipient in ways not consistent with the duties of that person

Discussion of some of the criticisms

Some criticism of welfare states concern the idea that a welfare state makes citizens dependent and less inclined to work. Wage labour is the socioeconomic relationship between a worker and an employer in which the worker sells their labour under a Contract ( Employment 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. The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands 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). [2] 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). [3] [4] The United States also leads most welfare states in the ownership of consumer goods. For example, it has more TV's per capita [5], more personal computers per capita [6], and more radios per capita [7] than what people would call welfare states. A personal computer ( PC) is any Computer whose original sales price size and capabilities make it useful for individuals and which is intended to be operated

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. The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located This article is about the country For a topic outline on this subject see List of basic France topics. 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 offense. Conservatism is a term used to describe political philosophies that favour Tradition, where tradition refers to various religious cultural or nationally defined 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 subsidized 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 their income does not cover their or their children's basic needs.

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. The Kingdom of Denmark ( ˈd̥ænmɑɡ̊ (archaic ˈd̥anmɑːɡ̊ commonly known as Denmark, is a country in the Scandinavian region of northern Europe 4% of GDP in 2002) and Sweden (tax level at 50. "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. 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 very rich citizens subsidize 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. Pareto efficiency, or Pareto optimality, is an important concept in Economics with broad applications in Game theory, Engineering and the 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).

The most extreme criticisms of states and governments, are from anarchists, who believe that all states and governments are undesirable and/or unnecessary. A state is a political association with effective Sovereignty over a geographic Area and representing a Population. For the government of parliamentary systems see Executive (government. Anarchism is a Political philosophy encompassing theories and attitudes which support the elimination of all compulsory Government, i 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. Avram Noam Chomsky (noʊm ˈtʃɑmski born December 7 1928 is an American linguist, Philosopher, cognitive scientist, Political " [14] Anarchists believe in stopping welfare programs only if it means abolishing government and capitalism as well. [15]

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 capita and welfare expenditure as a percentage of GDP.
Correlation between GDP (PPP) per capita and welfare expenditure as a percentage of GDP. Year 2001 ( MMI) was a Common year starting on Monday according to the Gregorian calendar.
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 countries with stronger developed economies. Poor countries tend to have limited resources for social services. There is very little correlation between economic performance and welfare expenditure. [16]

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. The European Union ( EU) is a political and economic union of twenty-seven member states, located primarily in Likewise, the pursuit of free market policies leads neither to guaranteed prosperity or social collapse. A free market is a Market in which property rights are voluntarily exchanged at a price arranged completely by the mutual consent of sellers and buyers 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. For a topic outline on this subject see List of basic Australia topics. Country to "Dominion of Canada" or "Canadian Federation" or anything else please read the Talk Page For a topic outline on this subject see List of basic Japan topics. The Kingdom of Belgium is a Country in northwest Europe. It is a founding member of the European Union and hosts its headquarters as well as those Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. The Kingdom of Denmark ( ˈd̥ænmɑɡ̊ (archaic ˈd̥anmɑːɡ̊ commonly known as Denmark, is a country in the Scandinavian region of northern Europe 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. The Human Development Index ( HDI) is an index combining normalized measures of Life expectancy, Literacy, Educational attainment, and GDP

The table below shows, first, welfare expenditure as a percentage of GDP for some (selected) OECD member states, with and without public education,[17] and second, GDP per capita (PPP US$) in 2001:

Nation Welfare expenditure
(% of GDP)
omitting education
Welfare expenditure
(% of GDP)
including education[17]
GDP per capita (PPP US$)
Denmark 29. The purchasing power parity ( PPP) theory uses the long-term equilibrium Exchange rate of two currencies to equalize their Purchasing power. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been Year 2001 ( MMI) was a Common year starting on Monday according to the Gregorian calendar. The Kingdom of Denmark ( ˈd̥ænmɑɡ̊ (archaic ˈd̥anmɑːɡ̊ commonly known as Denmark, is a country in the Scandinavian region of northern Europe 2 37. 9 $29,000
Sweden 28. "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. 9 38. 2 $24,180
France 28. This article is about the country For a topic outline on this subject see List of basic France topics. 5 34. 9 $23,990
Germany 27. Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. 4 33. 2 $25,350
Belgium 27. The Kingdom of Belgium is a Country in northwest Europe. It is a founding member of the European Union and hosts its headquarters as well as those 2 32. 7 $25,520
Switzerland 26. Switzerland (English pronunciation; Schweiz Swiss German: Schwyz or Schwiiz Suisse Svizzera Svizra officially the Swiss Confederation 4 31. 6 $28,100
Austria 26. Austria (Österreich ( officially the Republic of Austria (Republik Österreich 0 32. 4 $26,730
Finland 24. Finland, officially the Republic of Finland ( is a Nordic country situated in the Fennoscandian region of northern Europe. 8 32. 3 $24,430
Netherlands 24. The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands 3 27. 3 $27,190
Italy 24. Italy (Italia officially the Italian Republic, (Repubblica Italiana is located on the Italian Peninsula in Southern Europe, and on the two largest 4 28. 6 $24,670
Greece 24. Greece (Ελλάδα transliterated: Elláda, historically, Ellás,) officially the Hellenic Republic (Ελληνική Δημοκρατία 3 28. 4 $17,440
Norway 23. Norway ( Norwegian: Norge ( Bokmål) or Noreg ( Nynorsk) officially the Kingdom of Norway, is a Constitutional 9 33. 2 $29,620
Poland 23. Poland (Polska officially the Republic of Poland 0 N/A $9,450
United Kingdom 21. The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located 8 25. 9 $24,160
Portugal 21. Portugal, officially the Portuguese Republic (República Portuguesa is a country on the Iberian Peninsula. 1 25. 5 $18,150
Luxembourg 20. Luxembourg (Groussherzogtum Lëtzebuerg Grand-Duché de Luxembourg Großherzogtum Luxemburg is a small Landlocked country in Western Europe, bordered by 8 N/A $53,780
Czech Republic 20. The Czech Republic ( ˈt͡ʃɛskaː ˈrɛpuˌblɪka short form in Česko ˈt͡ʃɛskɔ also called Czechia, 1 N/A $14,720
Hungary 20. Hungary (Magyarország 'mɔɟɔrorsaːg) officially in English the Republic of Hungary ( Magyar Köztársaság, literally Magyar (Hungarian Republic 1 N/A $12,340
Iceland 19. Iceland, officially the Republic of Iceland ( ( Ísland or Lýðveldið Ísland ( 8 23. 2 $29,990
Spain 19. Spain () or the Kingdom of Spain (Reino de España is a country located mostly in southwestern Europe on the Iberian Peninsula. 6 25. 3 $20,150
New Zealand 18. New Zealand is an Island country in the south-western Pacific Ocean comprising two main landmasses (the North Island and the South Island 5 25. 8 $19,160
Australia 18. For a topic outline on this subject see List of basic Australia topics. 0 22. 5 $25,370
Slovak Republic 17. Slovakia (long form Slovak Republic; Slovak:, long form, is a Landlocked country in Central Europe with a population of over five million 9 N/A $11,960
Canada 17. Country to "Dominion of Canada" or "Canadian Federation" or anything else please read the Talk Page 8 23. 1 $27,130
Japan 16. For a topic outline on this subject see List of basic Japan topics. 9 18. 6 $25,130
United States 14. The United States of America —commonly referred to as the 8 19. 4 $34,320
Ireland 13. Ireland (pronounced /ˈaɾlənd/ Éire) is the third largest island in Europe, and the twentieth-largest island in the world 8 18. 5 $32,410
Mexico 11. The United Mexican States ( or commonly Mexico (ˈmɛksɪkoʊ () is a federal constitutional Republic in North America. 8 N/A $8,430
South Korea 6. South Korea, officially the Republic of Korea and often referred to as Korea ( Korean: 대한민국 tɛː 1 11. 0 $15,090

Figures from the OECD[18] and the UNDP. [19]

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

See also

References

  1. ^ Gould, Arthur (1993). The fifth power is a term apparently created by Ignacio Ramonet, that intends a continuation of the series of three classic branches of Baron de Montesquieu's Flexicurity (a Portmanteau of '''flexi'''bility and se'''curity''') is a Welfare state model with a pro-active Labour market The Hidden Welfare State is a term coined by Christopher Howard, assistant professor of government at the College of William and Mary, to refer to tax expenditures A mixed economy is an Economic system that incorporates aspects of more than one economic system Social security primarily refers to a Social insurance program providing social protection or protection against socially recognized conditions including poverty old Social security primarily refers to a Social insurance program providing social protection or protection against socially recognized conditions including poverty old In Sociology, social stratification is the hierarchical arrangement of Social classes Castes and strata within a Society. "Social welfare" redirects here For other uses see Welfare A social welfare provision refers to any program which seeks to provide Swedish welfare refers to the Swedish variant of the Mixed economy Welfare state prevalent in much of the industrialized world 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. ^ F. A. Hayek, The Constitution of Liberty (London: Routledge, 1960), p. 502, n. 12.
  4. ^ S. B. Fay, 'Bismarck's Welfare State', Current History, Vol. XVIII (January 1950), pp. 1-7.
  5. ^ Smith, Munroe (December 1901). "Four German Jurists. IV". Political Science Quarterly 16 (4): 669. ISSN 0032-3195.  
  6. ^ "welfare state. " O'Hara, Phillip Anthony (editor). Encyclopedia of political economy. Routledge 1999. p. 1245
  7. ^ Esping-Andersen, Gøsta (1999). Social Foundations of Postindustrial Economies. Oxford: Oxford University Press. ISBN 0-19-874200-2.  
  8. ^ 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.  
  9. ^ Social Services (2) - Saudi Arabia Information
  10. ^ Royal Embassy of Saudi Arabia London
  11. ^ a b Kenworthy, L. (1999). Do social-welfare policies reduce poverty? A cross-national assessment. Social Forces, 77(3), 1119-1139.
  12. ^ a b Bradley, D. , Huber, E. , Moller, S. , Nielson, F. & Stephens, J. D. (2003). Determinants of relative poverty in advanced capitalist democracies. American Sociological Review, 68(3), 22-51.
  13. ^ The Welfare State We're in / James Bartholomew (2004) ISBN 1842750631
  14. ^ http://www.zmag.org/chomsky_repliesana.htm Noam Chomsky on anarchist support for 'welfare state' policies
  15. ^ J.5 What alternative social organisations do anarchists create?
  16. ^ Atkinson, A. B. (1995). Incomes and the Welfare State. Cambridge: Cambridge University Press. ISBN 0-521-55796-8.  
  17. ^ a b Barr, N. (2004). Economics of the welfare state. New York: Oxford University Press (USA).
  18. ^ Organisation for Economic Co-operation and Development (OECD). "Welfare Expenditure Report" (Microsoft Excel Workbook), OECD, 2001.  
  19. ^ United Nations Development Programme (UNDP) (2003). "Human Development Indicators", Human Development Report 2003. New York: Oxford University Press for the UNDP.  

External links

Data and statistics

Dictionary

welfare state

-noun

  1. a social system in which the state takes overall responsibility for the welfare of its citizens, providing health care, education, unemployment compensation and social security
  2. a state or nation in which such a system operates
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