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Re-Theorizing the Welfare State and the Political Economy of Neoliberalism’s Campaign Against It

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  • Thomas Palley

Abstract

This article seeks to frame neoliberalism’s relation to the welfare state. At issue are competing views regarding the size and organization of the welfare state. The article presents a new theoretical framework that distinguishes between modes of production and financing of the welfare estate. The framework helps understand both comparative country welfare states and the goals of the neoliberal attempt to refashion the welfare state. The article then explores the political economy strategy behind the neoliberal campaign. It argues neoliberalism seeks to politically discredit the traditional welfare state and change the economic structure so that the latter becomes unviable. Economists have been active agents in this process.

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  • Thomas Palley, 2020. "Re-Theorizing the Welfare State and the Political Economy of Neoliberalism’s Campaign Against It," Journal of Economic Issues, Taylor & Francis Journals, vol. 54(3), pages 588-612, July.
    • Handle: RePEc:mes:jeciss:v:54:y:2020:i:3:p:588-612
    DOI: 10.1080/00213624.2020.1778396
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    Cited by:

    1. Missos, Vlassis & Domenikos, Charalampos & Pontis, Nikos, 2024. "Hardening the EU core-periphery lines, 2009–2019: Dependency, neoliberalism, welfare reformation and poverty in Greece," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 171-182.
    2. Betzelt, Sigrid & Bode, Ingo, 2022. "Emotional regimes in the political economy of the "welfare service state": The case of continuing education and active inclusion in Germany," IPE Working Papers 178/2022, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    3. Thomas I. Palley, 2022. "The Macroeconomics of Government Spending: Distinguishing Between Government Purchases, Government Production, and Job Guarantee Programs," Review of Political Economy, Taylor & Francis Journals, vol. 34(4), pages 692-708, October.

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