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The Welfare State: Insurance or Redistribution?

In: Debt, Democracy and the Welfare State: Are Modern Democracies Living on Borrowed Time and Money?

Author

Listed:
  • Rögnvaldur Hannesson

    (Norwegian School of Economics)

Abstract

The beginnings of the welfare state are usually traced to the social legislation initiated by Chancellor Bismarck of Imperial Germany in the late 1800s. Social reformist politicians in the United Kingdom around 1900, such as Winston Churchill and Lloyd George, were in part inspired by Bismarck. The growth of the welfare state is traced to the widening of the franchise, the growing power of the labor movement, shortage of labor after the two world wars and the increased administrative capabilities of the state following the war effort. The welfare state is not just social insurance, but involves redistribution of income, bound to be popular with voters. Gross social expenditures vary greatly among countries, while the difference is much less when measuring net social expenditures.

Suggested Citation

  • Rögnvaldur Hannesson, 2015. "The Welfare State: Insurance or Redistribution?," Palgrave Macmillan Books, in: Debt, Democracy and the Welfare State: Are Modern Democracies Living on Borrowed Time and Money?, chapter 4, pages 44-59, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-53200-8_4
    DOI: 10.1057/9781137532008_4
    as

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