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The Great Recession and social welfare spending in the American States

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  • J.A.G. Ewalt
  • E.T. Jennings

Abstract

A major question of political economy is why and under what conditions welfare state expansion and retrenchment takes place. We examine the impact of the Great Recession of 2008–2009 on welfare policies of the American states. The analysis examines social policy spending in the American States for periods ranging from 1982 to 2011. The results suggest that social welfare spending is higher with better economic conditions in general but also with higher poverty rates. Liberal citizens and governments and Democratic majorities in the state house produce higher welfare spending. There is a trade-off between education and social welfare spending. Controlling for political, social, and economic conditions that affect state welfare policy, the years of the Great Recession saw a contraction of spending on social welfare programs in general and Temporary Assistance to Needy Families in particular, but an expansion of support for Medicaid.

Suggested Citation

  • J.A.G. Ewalt & E.T. Jennings, 2014. "The Great Recession and social welfare spending in the American States," International Review of Public Administration, Taylor & Francis Journals, vol. 19(3), pages 308-323, July.
    • Handle: RePEc:taf:rrpaxx:v:19:y:2014:i:3:p:308-323
    DOI: 10.1080/12294659.2014.966887
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    Cited by:

    1. Jeffrey Swanson & Namhoon Ki, 2020. "When Would a Democratic Governor Increase Social Welfare Funding? The Joint Moderation of a State's Economy and a Governor's Budgetary Authority," Review of Policy Research, Policy Studies Organization, vol. 37(5), pages 634-656, September.
    2. Kara D. Smith & Bryan Shone, 2016. "Progressive State Taxes and Welfare," Poverty & Public Policy, John Wiley & Sons, vol. 8(4), pages 430-437, December.
    3. Ozili, Peterson K, 2020. "Covid-19 pandemic and economic crisis: The Nigerian experience and structural causes," MPRA Paper 99424, University Library of Munich, Germany.

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