Over the past thirty years there have been external and internal pressures on the state to downsize, become more streamlined and allow the market to operate as openly as possible. The two policies adapted that have had the most profound effect were privatization of state owned companies and pressure to lower taxes, both of which has greatly reduced the state’s ability to provide a viable welfare state.
The 1970s were marked with unprecedented growth of giant corporations operating in dozens of countries. With the increased economic power came increased influence on state policy. The economic elites utilized this influence to pressure states to privatize state owned companies because it was argues that it would “level the playing field” and allow for competition and... (more)
Over the past thirty years there have been external and internal pressures on the state to downsize, become more streamlined and allow the market to operate as openly as possible. The two policies adapted that have had the most profound effect were privatization of state owned companies and pressure to lower taxes, both of which has greatly reduced the state’s ability to provide a viable welfare state.
The 1970s were marked with unprecedented growth of giant corporations operating in dozens of countries. With the increased economic power came increased influence on state policy. The economic elites utilized this influence to pressure states to privatize state owned companies because it was argues that it would “level the playing field” and allow for competition and innovation. The state caved in and many social services disintegrated with it.
Moreover, the lowering of taxes has greatly diminished the state’s ability to provide a robust welfare state. Economic studies have indicated that putting more money into citizen’s pockets stimulates consumption and economic growth. Again the welfare state is sacrificed for the good of economic growth.
The state of social welfare will continue to erode as economic and political elite deems its existence as obstacle to economic growth and prosperity. The future political and economic leaders of the world will decide if it will continue to be eroded further (a recent example is the deregulation of professional schools in Canada), or the growing disparities between rich and poor may cause the disadvantaged to demand change the social welfare system. (
wiki)
Login 
Home
Understanding
