The welfare State

Social Democratic Advantages

-Almost everyone in society benefits from this -Reduces the wealth and class differences; inequality is low

Karl Marx and Keynes Support

-Believe it is a redistribution of wealth -You earn more/ you pay more -Everyone gets a job eventually -Welfare spending can lead to economic growth

Social Democratic Disadvnatages

-Complicated; lots of government -High taxes on businesses -Private sector companies cannot succeed -Vulnerable to change in population

Support for welfare state

-Helps to avoid growing inequality -Fair system which offers equality of opportunity and meritocracy -Universal income(everyone gets money with or without working) -Provides a safety net (it is hard to escape poverty) -Welfare state allows social mobility (success)

Corporatist Advantages

-High level of support from the public -More you pay; more you get

Corporatist Disadvantages

-If society is changing, this maintains social divisions -Labour costs are higher because everyone is paying for insurance -You suffer if you have unstable/poor work -Only works if population is stable

Liberal Advantages

-Lower taxes needed to maintain -Not affected by change in population -Competition in private sectors

Welfare Reform Act 2012

Act of Parliament in the United Kingdom which makes changes to the rules concerning a number of benefits offered within the British social security system

Social democratic (Scandinavia)

Bigger and more universal Aside from insurance, it provides childcare and homecare Produces higher quality government services High quality welfare state

Liberal Disadvantages

Can lead to two tiered societies

1948 National Health ACT

Free Health services at point of use for everyone

1944 Education Act

Free secondary education for everybody

cradle-to-the-grave welfare state

From the moment you are born and until you die, the state will look after you

1945 Family allowance Act child benefit

Government paid you money for having children in order to support you

Corporatist (continental Europe

Insurance model You contribute and use the money when you need it Pensions (insurance/health insurance/unemployment)

Against welfare state

It denies freedom -Not allowed to choose what happens to all of your money It is a form of robbery -Taking taxes from workers to pay for someone else It is a bureaucratic and expansionist -Inefficient and lead to State becoming more powerful (soviet union) It is inefficient -Government cannot deliver services as efficiently as the market It promotes laziness and dependence -Destroys the incentive to work and creates a poverty trap Decrease in competitive markets

Liberal (Anglo-American states)

Reaction to growth of welfare states Prefer a free market system; do not want communism Safety net -Not expensive -Not a threat to businesses

Welfare state

System whereby the state undertakes to protect the health and well-being of its citizens, especially those in financial or social need by means of grants, pensions, and other benefits.

Five giant evils (Beveridge report 1942)

Want Desire Ignorance Squalor Idelness

1946 National Insurance Act

When you are old, sick, and unemployed you got money

William Beveridge

Wrote the Beveridge Report 1942

poverty trap

a situation in which an increase in someone's income is offset by a consequent loss of state benefits, leaving them no better off.

Ian Duncan smith

face of cutting welfare