Notes on Welfare Economy

From  DAVID GARLAND The Welfare State: A Fundamental dimension of of Modern Government

• Five sectors of welfare governance
• An essential part of the social and economic organization of modern capitalist societies
• A mentality of government - emerged at the beginning of 20th century, was instituted across the developed world in tge aftermath of WW2. 
• A form of social and economic administration rather than politics or ideology
• To make capitalism viable

Welfare States and Welfare State Theory Andersen, Jørgen Goul

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Welfare States and Welfare State Theory 

Andersen, Jørgen Goul 

In Western Europe, the first basic  pillars of social protection emerged around 1900, but the modern welfare state – a term coined in the early 1940s – developed from the 1950s to the 1970s. Social protection was extended to a broader range of social risks and services, coverage was widened to most of the population, and  compensation levels came to reach well above subsistence level. As a consequence, tax extraction  reached between one third and one half of the economy (GDP), occasionally more. Since the 1980s  welfare states have continued to expand, but typically without raising the rate of taxation. 

Welfare states have also developed in recently industrialized countries and in former communist 

countries, following the transition to market economy. Among significant “newcomers” China 

started developing a modern welfare state in the 1990s. Taking a broad view, the welfare state 

seems intrinsically linked to market economy and industrialism, as claimed by functionalist writers 

more than 50 years ago (Wilensky & Lebaux, 1958). However, different welfare models or “welfare 

regimes” can be traced back to the formative period. Since the 1980s or 1990s, most welfare states 

have undergone significant restructuring, recalibration or even transformation, but this has not 

eliminated “regime” differences.

In short, the welfare state modifies the impact of the market, by providing some sort of minimum 

guarantee (mitigating poverty); covering a range of social risks (security), and providing certain 

services (health care, child and elder care, etc.) – at the best standards available. Welfare states 

differ as regards the level of ambition and the mix between these aspects: Coverage may include a 

broad or a narrow range of risks and services, and minima may alleviate poverty or aim at providing 

equality

In Western Europe, the first basic pillars of social protection emerged around 1900, but the modern welfare state – a term coined in the early 1940s – developed from the 1950s to the 1970s. Social protection was extended to a broader range of social risks and services, coverage was widened to most of the population, and compensation levels came to reach well above subsistence level. As a consequence, tax extraction reached between one third and one half of the economy (GDP), occasionally more. Since the 1980s welfare states have continued to expand, but typically without raising the rate of taxation.

Welfare States and Welfare State Theory Andersen, Jørgen Goul z