Impact of the Welfare State on the American Economy

Impact of the Welfare State on the American Economy
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The Joint Economic Committee (JEC), based in Washington, D.C., presents the full text of a paper entitled "The Impact of the Welfare State on the American Economy," written by Lowell Gallaway and Richard Vedder and published December 1995. The paper discusses the issue of the optimal size of the federal government, using econometric techniques.

The Decline of the Welfare State

The Decline of the Welfare State
Author: Assaf Razin
Publisher: MIT Press
Total Pages: 152
Release: 2005-01-21
Genre: Business & Economics
ISBN: 9780262264365

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An analysis of the welfare state from a political economy perspective that examines the effects of aging populations, migration, and globalization on industrialized economies. In The Decline of the Welfare State, Assaf Razin and Efraim Sadka use a political economy framework to analyze the effects of aging populations, migration, and globalization on the deteriorating system of financing welfare state benefits as we know them. Their timely analysis, supported by a unified theoretical framework and empirical findings, demonstrates how the combined forces of demographic change and globalization will make it impossible for the welfare state to maintain itself on its present scale. In much of the developed world, the proportion of the population aged 60 and over is expected to rise dramatically over the coming years—from 35 percent in 2000 to a projected 66 percent in 2050 in the European Union and from 27 percent to 47 percent in the United States—which may necessitate higher tax burdens and greater public debt to maintain national pension systems at current levels. Low-skill migration produces additional strains on welfare-state financing because such migrants typically receive benefits that exceed what they pay in taxes. Higher capital taxation, which could potentially be used to finance welfare benefits, is made unlikely by international tax competition brought about by globalization of the capital market. Applying a political economy model and drawing on empirical data from the EU and the United States, the authors draw an unconventional and provocative conclusion from these developments. They argue that the political pressure from both aging and migrant populations indirectly generates political processes that favor trimming rather than expanding the welfare state. The combined pressures of aging, migration, and globalization will shift the balance of political power and generate public support from the majority of the voting population for cutting back traditional welfare state benefits.

Wealth and Welfare States

Wealth and Welfare States
Author: Irwin Garfinkel
Publisher: OUP Oxford
Total Pages: 272
Release: 2010-01-28
Genre: Business & Economics
ISBN: 0191037559

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This book explores the role of the welfare state in the overall wealth and wellbeing of nations and in particular looks at the American welfare state in comparison with other developed nations in Europe and elsewhere. It is widely believed that the welfare state undermines productivity and economic growth, that the United States has an unusually small welfare state, and that it is, and always has been, a welfare state laggard. This book shows that all rich nations, including the United States, have large welfare states because the socialized programs that comprise the welfare state-public education and health and social insurance—enhance the productivity of capitalism. In public education, the most productive part of the welfare state, for most of the 19th and 20th centuries, the United States was a leader. Though few would argue that public education is not part of the welfare state, most previous cross national analyses of welfare states have omitted education. Including education has profound consequences, undergirding the case for the productivity of welfare state programs and the explanation for why all rich nations have large welfare states, and identifying US welfare state leadership. From 1968 through 2006, the United States swung right politically and lost its lead in education and opportunity, failed to adopt universal health insurance and experienced the most rapid explosion of health care costs and economic inequality in the rich world. The American welfare state faces large challenges. Restoring its historical lead in education is the most important but requires investing large sums in education, beginning with universal pre-school and in complementary programs that aid children's development. The American health insurance system is by far the most costly in the rich world, yet fails to insure one sixth of its population, produces below average results, crowds out useful investments in children, and is the least equitably financed. Achieving universal coverage will increase costs. Only complete government financing is likely to restrain long term costs. In memory of Robert J. Lampman Colleague, Co-author, Friend and Mentor

The Shift in U.S. Welfare Policy and its Impact on Economic Well-Being

The Shift in U.S. Welfare Policy and its Impact on Economic Well-Being
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Publisher: GRIN Verlag
Total Pages: 27
Release: 2020-02-19
Genre: Political Science
ISBN: 3346116743

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Studienarbeit aus dem Jahr 2018 im Fachbereich Politik - Region: USA, Note: 1.0, Universität zu Köln (Cologne Center for Comparative Politics), Veranstaltung: Political Economy of the USA, Sprache: Deutsch, Abstract: The question arising for this research is the following: Can a paradigm shift explain changes in U.S. welfare policy under Reagan and did the altered policy have an impact on the economic well-being of its citizens? In order to answer these questions, this paper is divided into five sections. The first section presents Peter Hall’s approach of social learning, which serves as theoretical framework for this paper and indicates that a paradigm shift occurs through three different stages. Secondly, the method and data used in this paper will be discussed. The analysis, forming the fourth section, first establishes that indeed a paradigm shift happened by descriptively analyzing that the shift towards a new welfare consensus is detectable in all levels of social learning. Through the second part of the analysis, which evaluates the impact of the paradigm shift on the citizens’ economic well-being, it becomes obvious that no improvement happened during the Reagan presidency. Within the fifth sections the results will be summarized and discussed. The last section briefly considers the legacy Reagan bequeathed and points out the limitations of this paper. Since the 1970s, the welfare state faced mounting challenges. Moreover, the election of Ronald Reagan as new President of the U.S.A. marks a turning point in the history of the U.S. welfare. Reagan challenged the established welfare state consensus, arguing that the nation’s economic well-being would be promoted more effectively by retrenching and reorganizing the social welfare state. Under the Reagan Administration (1981-89) welfare policy was altered and brought into focus by new viewpoints on its purpose, encompassing a political call for more self-responsibility and less state regulation. A possible explanation for the changes could be the development of a new policy paradigm aiming to replace the existing one due to certain, mainly economical, reasons, also referred to as paradigm shift. Such a paradigm shift in the policy of a welfare state could alter the economic well-being of its citizen as it incorporates a change of self-perception of the state that it is no longer primary responsible for deliberately modifying the natural course of market forces through the provision of social services and financial assistance.

From Poor Law to Welfare State, 6th Edition

From Poor Law to Welfare State, 6th Edition
Author: Walter I. Trattner
Publisher: Simon and Schuster
Total Pages: 469
Release: 2007-11-01
Genre: History
ISBN: 1416593187

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Over twenty-five years and through five editions, Walter I. Trattner's From Poor Law to Welfare State has served as the standard text on the history of welfare policy in the United States. The only comprehensive account of American social welfare history from the colonial era to the present, the new sixth edition has been updated to include the latest developments in our society as well as trends in social welfare. Trattner provides in-depth examination of developments in child welfare, public health, and the evolution of social work as a profession, showing how all these changes affected the treatment of the poor and needy in America. He explores the impact of public policies on social workers and other helping professions -- all against the backdrop of social and intellectual trends in American history. From Poor Law to Welfare State directly addresses racism and sexism and pays special attention to the worsening problems of child abuse, neglect, and homelessness. Topics new to this sixth edition include: A review of President Clinton's health-care reform and its failure, and his efforts to "end welfare as we know it" Recent developments in child welfare including an expanded section on the voluntary use of children's institutions by parents in the nineteenth century, and the continued discrimination against black youth in the juvenile justice system An in-depth discussion of Charles Murray and Richard Herrnstein's controversial book, The Bell Curve, which provided social conservatives new weapons in their war on the black poor and social welfare in general The latest information on AIDS and the reappearance of tuberculosis -- and their impact on public health policy A new Preface and Conclusion, and substantially updated Bibliographies Written for students in social work and other human service professions, From Poor Law to Welfare State: A History of Social Welfare in America is also an essential resource for historians, political scientists, sociologists, and policymakers.

The Political Economy of the Welfare State

The Political Economy of the Welfare State
Author: Thomas Wilson
Publisher: Taylor & Francis
Total Pages: 234
Release: 2021-11-21
Genre: Business & Economics
ISBN: 1000477975

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In the early 1980s, the welfare state, for too long regarded as a notable contribution to the establishment of a humane social order, had over the previous decade come under increasing attack. Some of its critics, especially in the UK and the USA, maintained that it had failed to deal satisfactorily with the problem of poverty. Others held that it was over-elaborate, created a psychology of dependence and imposed costs that needed to be reduced as part of a policy of general economic recovery. In a number of countries, cuts had already been imposed or were now contemplated. In this situation it was crucially important to direct attention once more to the basic objectives of the various welfare services from a systematic and comparative standpoint. Originally published in 1982, the authors of this book, one an economist and the other a specialist in social administration, subjected these aims to rigorous analysis and discuss the underlying issues of social philosophy. They then attempt to assess the various methods adopted for their attainment in Britain and comment on those adopted in the USA and in some continental European countries. Although the authors reject the more extreme assertion that the welfare state has been a failure, they point to the need to relate some of the policies followed more clearly to the basic objectives. A number of proposals for reform are put forward which would imply some change of emphasis and should permit a simplification of existing over-complex arrangements.

The Welfare State

The Welfare State
Author: David Garland
Publisher: Oxford University Press
Total Pages: 177
Release: 2016
Genre: Business & Economics
ISBN: 0199672660

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This Very Short Introduction discusses the necessity of welfare states in modern capitalist societies. Situating social policy in an historical, sociological, and comparative perspective, David Garland brings a new understanding to familiar debates, policies, and institutions.

Globalization and the Future of the Welfare State

Globalization and the Future of the Welfare State
Author: Miguel Glatzer
Publisher: University of Pittsburgh Press
Total Pages: 289
Release: 2010-11-23
Genre: Political Science
ISBN: 0822972697

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In the last quarter of the twentieth century, the global political economy has undergone a profound transformation. Democracy has swept the globe, and both rich and developing nations must compete in an increasingly integrated world economy.How are social welfare policies being affected by this wave of economic globalization? Leading researchers explore the complex question in this new comparative study. Shifting their focus from the more commonly studied, established welfare states of northwestern Europe, the authors of Globalization and the Future of the Welfare State examine policy development in the middle-income countries of southern and eastern Europe, Latin America, Russia, and East Asia. Previous investigations into the effects of globalization on welfare states have generally come to one of two conclusions. The first is that a global economy undermines existing welfare states and obstructs new developments in social policy, as generous provisions place a burden on a nation's resources and its ability to compete in the international marketplace. In contrast, the second builds on the finding that economic openness is positively correlated with greater social spending, which suggests that globalization and welfare states can be mutually reinforcing.Here the authors find that globalization and the success of the welfare state are by no means as incompatible as the first view implies. The developing countries analyzed in Globalization and the Future of the Welfare State demonstrate that although there is great variability across countries and regions, domestic political processes and institutions play key roles in managing the disruptions wrought by globalization.