Understanding the Welfare State: Origins, Objectives, and Evolution
Understanding the Welfare State
The welfare state, succeeding the Liberal State, focuses on social policy, extending social welfare to the middle classes and other areas. This transformation of social policy was influenced by several factors:
- Universal Suffrage: The expansion of democracy across Europe.
- The Great Depression (1929): Highlighted the weaknesses of the capitalist model in ensuring adequate resource distribution and economic growth.
- Industrialization: The creation of consumer goods with limited lifespans (e.g., cars).
- Increased Social Mobility and Demographic Changes: The growth of shanty towns and transportation needs.
To address the perceived inefficiencies of the capitalist model, interventionist policies and laws, such as the Old Social Security and pension systems, were implemented. The Beveridge Report of 1942 further expanded these efforts, envisioning a system of social benefits to protect citizens “from the cradle to the grave” and combat poverty, disease, ignorance, filth, and idleness.
Key Components of the Beveridge Program
- A unified social security system to improve pensions, maternity benefits, old age support, widowhood assistance, and unemployment benefits.
- A national health service providing free, universal healthcare coverage.
- A national welfare system aimed at achieving a minimum standard of living, providing universal family benefits, and pursuing full employment.
Lord Beveridge’s objectives were to ensure a minimum income level, anticipate future risks, and establish a social system based on Social Security, National Assistance, and volunteer efforts.
The Emergence of the Welfare State After World War II
The welfare state gained prominence after World War II, driven by the need to rebuild shattered European economies. Keynesian economic theories emerged, suggesting that wartime spending demonstrated the feasibility of consumption and that savings were not always beneficial. The working classes could access limited consumption, while capitalist classes, lacking confidence in the future, might seek to extend their satisfaction.
Stimulating consumption and demand was seen as crucial for spurring economic growth and enabling broader consumption. Thus, demand, rather than supply, became the engine of the economy. The public sector was expected to intervene to revive investment and increase consumption.
Defining the Welfare State
The concept of the welfare state is complex and subject to dynamic changes, varying across different contexts and realities.
- MONTERO JL: Defines it as a form of political organization where public authorities are responsible for ensuring basic social protection and welfare for citizens.
- R. Muñoz de Bustillo: Describes it as a set of public actions aimed at guaranteeing all citizens access to minimum services to ensure their survival in social terms.
The welfare state is an evolving reality, giving rise to various models that share the common goal of combining public provision and/or public financing of services with a market economy. The balance between these elements changes over time and differs from country to country.