The Dynamic Welfare State

The Dynamic Welfare State explains the decline of the classic welfare state and documents the emergence of a third stage in the American welfare state, evident in corporations exploiting markets in healthcare, education, and financial services. Architects of the welfare state envisaged government as the provider of essential services to citizens; however, as the Medicare Modernization Act of 2003 and the Affordable Care Act of 2010 show, corporations and the wealthy have become adept at using trade associations, hiring lobbyists, influencing elections, and contributing to think tanks in order to craft public policy so that it is congruent with industry preferences. Additionally, The Dynamic Welfare State describes the failure of health and human services professionals to advance the welfare of the public, graphically illustrated by the poverty trap, deinstitutionalization of the mentally ill, and "the school-to-prison pipeline." A reconfigured welfare state is essential if government social programs are to honor their public commitments for the 21st century. This requires an appreciation for the contributions of nonprofit and for-profit organizations as well as the role of capitalism in welfare philosophy. Empowerment, mobility, and innovation are themes for a dynamic welfare state that is congruent with the 21st century.

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.

A study based on a recent work by the Welfare State Programme at the London School of Economics, this work examines the impact of the welfare state as a means of redistributing incomes. It includes the results of an LSE microsimulation model of lifetime incomes, taxes and benefits.

On the economics of the welfare State

The Dynamic Welfare State makes a case for a radical shift in how we view the roles of both public and private institutions in the United States. It documents the emergence of a third stage in the American welfare state, evident in corporations exploiting markets in healthcare, education, and financial services. Architects of the welfare state envisaged government as the provider of essential services to citizens; however, as the Medicare Modernization Act of 2003 and the Affordable Care Act of 2010 show, corporations and the wealthy have become adept at using trade associations, hiring lobbyists, influencing elections, and contributing to think tanks in order to craft public policy that is congruent with industry preferences. Moreover, the influence of "dark money" through political action committees classified by the IRS as "social welfare organizations" in order to obscure the identity of donors is pernicious to democracy. In addition to accounting for the marketization of public policy, The Dynamic Welfare State describes the failure of health and human services professionals to advance the welfare of the public, graphically illustrated by the poverty trap, the deinstitutionalization of the mentally ill, and the "school-to-prison pipeline." The status quo is unsustainable, and a reconfigured welfare state is essential if government social programs are to honor their public commitments for the 21st century. In this bold and timely text, David Stoesz illustrates how and why empowerment, mobility, and innovation are themes for a dynamic welfare state that is congruent with the modern day.

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.

This book analyzes the politics of social programs that are well known (such as Social Security and welfare) and less well known but still important (such as workers' compensation, home mortgage interest deduction, and the Americans with Disabilities Act). Although it emphasizes developments in recent decades, the book ranges across the entire twentieth century to identify patterns of policymaking.

Creating the Welfare State investigates how private business and public bureaucracy worked together to create the structure of much of the modern welfare state in America. Covering the period from the 1980s to the present, this important volume employs interdisciplinary techniques to demonstrate how politics, economics, law, and social theory merged over the course of a century of policy formulation and implementation. The authors also draw upon previously unconsulted sources from government warehouses and archives to analyze the operation of early federal social welfare programs such as vocational rehabilitation. Their discussions range from those early programs to modern ones such as cost of living pay adjustments and social security disability benefits. This emphasis on the notion of the continuing development of welfare programs is a significant factor in the welfare state controversies--a factor often ignored by other historians and writers.

The Media Welfare State: Nordic Media in the Digital Era comprehensively addresses the central dynamics of the digitalization of the media industry in the Nordic countries—Sweden, Norway, Denmark, Finland, and Iceland—and the ways media organizations there are transforming to address the new digital environment. Taking a comparative approach, the authors provide an overview of media institutions, content, use, and policy throughout the region, focusing on the impact of information and communication technology/internet and digitalization on the Nordic media sector. Illustrating the shifting media landscape the authors draw on a wide range of cases, including developments in the press, television, the public service media institutions, and telecommunication.

Milton Friedman, the Nobel-prize laureate economist, had it right: "It's just obvious that you can't have free immigration and a welfare state." That is, national welfare states can almost never coexist with the free movement of labor. This fact underscores the relevance of the analysis in this paper, which is a part of a forthcoming book on migration and the welfare state. It focuses on the demographic, and economic, fundamentals behind policy-restricted migration, and the policy-restricted generosity of the welfare state.