Economic and social rights the welfare state

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Economic and social rights -- the welfare state

• Richard Simeon

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Introduction from rights to government policy

• Economic and social rights as elements in social
  citizenship. (Marshall)
• Not freedom from but freedom to
• Often found in modern Bills of rights not in
  older ones (Canada, US).
• Economic and social rights are embodied in the
  idea of the welfare state, or social policy

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Public policy

• The decisions and programs that modern
  governments adopt
• Through payments to people (e.g. pensions)
• Providing services (e.g. education, swimming
  pools)
• The tax system e.g. deductions for child care
• Regulating public and private behaviour e.g.
  workplace safety rules

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IDEA question Are economic and social rights
guaranteed to all?

• Assumption this is a proper role for government.
• Market cannot guarantee equality, cannot protect
  citizens from hardship
• Cannot guarantee stable growth, full employment,
  etc.

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Key question what is the proper role of
government?

• The minimal night watchman state. People should
  look after themselves
• Socialist view maximum role for government in
  social and economic affairs
• Social democratic view blend capitalism and the
  market with active government basis of the
  welfare state

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Why the welfare state rationales

• Government has a responsibility to
• Ensure at least a minimum standard of living for
  all the social safety net.
• Protect people against lifes major hazards old
  age, sickness, disability, unemployment, etc.
• To ensure a healthy, educated, productive
  workforce
• Ensure some measure of equality of opportunity
• Ensure some redistribution of wealth between
  richer and poorer

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The social contract

• Some see this as a fundamental social contract
  between business, government, and citizens
• Citizens get education, health care, the right
  to a healthy work place, pensions, etc.
• Business gets productive, healthy trained
  workers
• A virtuous circle.

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Origins of the welfare state

• Big historical trends industrialization,
  urbanization, secularization, from 18th c.
• Recent social trends women in the work force,
  aging population
• Means family, church, local community no longer
  sufficient
• Political rights for working class seeking to
  use voting power to alter balance between workers
  and employers

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Evolution of the welfare state

• First Bismarcks Germany co-opt the working
  class pre-empt revolution
• Great depression of the 1930s failure of
  capitalism huge unemployment and distress
• World War II shared sacrifice demonstrated
  competence of government
• Postwar commitments the Keynesian welfare state

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Historic compromise

• Government commitment to social justice and full
  employment
• Labour and socialist parties give up commitment
  to full public ownership.
• Canada White paper on Incomes and Employment
  commits government to manage the economy to
  ensure full employment, and to build welfare state

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Major building blocks of the welfare state Canada

• Income security Old Age Pensions, Canada Pension
  Plan, Employment Insurance, Workers Compensation
• Medicare public, and universal
• Education
• Welfare programs for children, the disabled, the
  poor, etc.
• Together health, education and welfare make up
  great bulk of government spending
• Workers right against discrimination, to a
  healthy workplace, to organize

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Variations in welfare states

• All modern countries have some form of the
  welfare state, but there are important
  differences
• The liberal model North America, UK a
  limited welfare state prime responsibility rests
  with individuals limited, means-tested benefits
  minimal involvement in state provision of
  services little redistribution in the tax system

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Social democratic model

• Wide range of social benefits
• Universally available
• Scandinavian countries, Netherlands, Austria
• Alternative the Conservative model, elsewhere in
  continental Europe

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Welfare state in the developing world

• South Africa more than ½ people live on less
  than 2.00 per day.
• With so many poor people, who will pay for the
  dole?
• Proposal for guaranteed payment of 10 per month
  for everyone.
• It would help me feed my boys.
• Poverty makes welfare state on western models
  almost an impossible dream

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Explaining variations

• What is to be explained -- crude measure how
  much do countries spend on social welfare?
• Sweden 31 per cent of Gross Domestic Product
  (GDP) 1998
• Canada 18 per cent
• United States 14.6 per cent

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Explanations

• Wealth richer countries can afford more generous
  welfare states. Overall, yes, but what explains
  US and Japan as exceptions?
• Culture, ideology a powerful explanation think
  of US individualism, hostility to big government.
  Cf. Canada, Europe.

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Explanations/2

• Homogeneous vs. diverse societies. C.f. US where
  race has been a major barrier to welfare state
  support
• Political factors strong left/labour parties and
  strong trade union movements are associated with
  more generous welfare states.
• Where business more powerful, weaker welfare
  states
• Institutional federal countries more likely to
  have smaller welfare states. Why?

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Modern crisis of the welfare state

• In all western countries, welfare state spending
  grows fast until early 1970s, fuelled by rapid
  economic growth
• Crunch in the 1970s and after.
• Major factors

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Are

• End to postwar economic growth trade-offs become
  more difficult
• Rising debts and deficits place pressure on all
  government spending
• Aging population, new medical technologies,
  social changes make welfare state spending more
  expensive
• Globalization increased emphasis on
  international competitiveness (taxes, etc.)

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And. . .

• To these economic and social forces is added the
  growth of neo-liberal ideology
• State is too big saps individual initiative is
  creating a dependency society smaller
  government is better individual initiative is
  better people should be responsible for their
  own lives. Strongest in North America.

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The result erosion of the welfarestate?

• Canada and Ontario cuts in welfare, decline in
  social housing, tougher rules for employment
  insurance, increased university fees, etc. BUT
  no erosion of Medicare
• US end of welfare as we know it. Clinton
• Europe Blairs third way.

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BUT

• The numbers show that in fact, in terms of
  government spending, there was very little
  erosion of the welfare state in the 1990s
• The feared rush to the bottom did not happen
  either within or between countries.
• Debate what is the social role of government
  today?