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.

The welfare state is still very much central in people’s everyday lives. The welfare state is at the same time contested and debated, and has often been argued to be in a crisis not only in the wake of the financial crisis. Welfare and welfare states used to be a national issue and prerogative. Today welfare and welfare states are influenced by national as well as regional and global decisions. However, nation states play a decisive role influenced by national preferences and ideas, and, in recent years, populism and welfare chauvinism. This book provides an overview of the central concepts through the lenses of the state, market and civil society. It also provides the reader with knowledge on distribution in societies and how this interacts and influences different groups and their position in society. There are also chapters dealing specifically with central sectors in the welfare states such as health, long-term care and education. The book uses a comparative approach as this better enables one to understand one’s own country's welfare, as well as helping to underline and see the linkages to the impact of global and regional issues on welfare states and their development. Finally, the book presents challenges and future perspectives for welfare states and their development. The book’s focus on core concepts and the variety of international welfare state regimes and mechanisms for delivering social policy provides a much-needed introduction to the rapidly changing concept of welfare for students on social policy, social studies, sociology and politics courses.

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 welfare state plays a key role in people’s everyday lives in developed societies. At the same time, the welfare state is contested and there are constant discussions on how and to what degree the state should intervene, influence and have an impact on the development of society. Recent years have seen an accelerated transformation of the welfare state in the light of the global financial crisis, demographic change and changes in the perception of the state’s role in relation to social welfare. This raises fundamentally new issues related to social policy and welfare state analysis. This book provides: an introduction to the principles of welfare a conceptual framework necessary for understanding social policy at the macro-level a comparative approach to welfare states globally an overview of new ways to organise and steer welfare states an introduction to welfare state politics and underlying economic framework an account of equality and inequality in modern societies new directions for welfare states The book’s focus on core concepts and the variety of international welfare state regimes and mechanisms for delivering social policy provides a much needed introduction to the rapidly changing concept of welfare for students on social policy, social studies, sociology and politics courses.

Publisher Description

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.

The welfare state has been under attack for decades, but now more than ever there is a need for strong social protection systems—the best tools we have to combat inequality, support social justice, and even improve economic performance. In this book, José Antonio Ocampo and Joseph E. Stiglitz bring together distinguished contributors to examine the global variations of social programs and make the case for a redesigned twenty-first-century welfare state. The Welfare State Revisited takes on major debates about social well-being, considering the merits of universal versus targeted policies; responses to market failures; integrating welfare and economic development; and how welfare states around the world have changed since the neoliberal turn. Contributors offer prescriptions for how to respond to the demands generated by demographic changes, the changing role of the family, new features of labor markets, the challenges of aging societies, and technological change. They consider how strengthening or weakening social protection programs affects inequality, suggesting ways to facilitate the spread of effective welfare states throughout the world, especially in developing countries. Presenting new insights into the functions the welfare state can fulfill and how to design a more efficient and more equitable system, The Welfare State Revisited is essential reading on the most discussed issues in social welfare today.