Ill Fares the Welfare State

Since the 1970s, the welfare states of Western Europe have experienced severe economic problems. These problems have three main sources. First, European welfare states have attempted to create citizens motivated by a sense of solidarity & concerned for equality; in fact, they have not done so, b...

Full description

Saved in:
Bibliographic Details
Published in:Policy review (Washington, D.C.) D.C.), 1981-10, Vol.18 (18), p.133-138
Main Author: Krauss, Melvyn B
Format: Article
Language:English
Subjects:
ECONOMIC ANALYSIS
Economic/Economics/Economical
Europe
PRODUCTIVITY
State/States
WELFARE
West/Western/Westernization
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Since the 1970s, the welfare states of Western Europe have experienced severe economic problems. These problems have three main sources. First, European welfare states have attempted to create citizens motivated by a sense of solidarity & concerned for equality; in fact, they have not done so, but have created incentives for citizens to use the welfare system for private advantage or special group advantage. In addition, a concept of economic rights has been accepted which effectively commits government to subsidize low-productivity industries & thus removes the incentive for workers & managers to maintain productivity. Finally, the "wage gap" between what employees are paid & what it costs firms to employ them is substantial, producing an incentive to evade taxes through the black market. W. H. Stoddard.
ISSN:0146-5945
2169-6802