Market Problems In The Welfare State

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Broad topic. The welfare state is a governing system where a state plays an important role, in order to provide economic prosperity, prosperousness, security to its citizens, based on the concept of equality. Citizens get benefits from welfare services like education, healthcare, support for the needy, social security Many economists can argue about state intervention, sometimes, higher taxes, because of welfare state. But the most important thing to recognize positive benefits of welfare state, like universal access to public goods: access to healthcare, decreases disease and increases public health, access to education, provides knowledge to everyone regardless of their social status. One of the top debated injustices of laissez faire…show more content…
Furthermore, how markets can survive during market failures? How and when government can intervene in order to prevent any market failures? Market failures are one of the most important reasons for welfare states’ development, but there is much more to add. However, market problems and market conflicts should be taken into account too. My master thesis, “Can the welfare state be the future of the Global economy” supervised by Dr. Kapás, engendered my interest in this area. Now I am willing to continue my academic career with Ph.D. and do deep research on this topic. The relationship between state and market has been an object for analysis since classical economists. One of the main challenges is to explore advantages and disadvantages of any scale of correlation between them. Government intervention and a majority of state ownership, as some of the chief characteristics of a welfare state, can be main drivers of prosperity, but these features should be in harmony with free market tools, as in Sweden case. Is there any ideal ratio of a state-market relationship for economic…show more content…
Regarding classical economists, the free market should not be an object for political speculation and should be protected. Democratic institutions may have a significant role in this case. Looking at Esping-Andersen (1990) observations, we can see that, the first major welfare state initiatives occurred prior to democracy, but also that they were often motivated by desires to arrest its realization. This was certainly the case in France under Napoleon II, in Germany under Bismarck, and in Austria under von Taaffe. Conversely, welfare state development was most retarded where democracy arrived early, such as in the United States, Australia, and Switzerland. (Esping-Andersen, 1990). In a like manner residual welfare and institutional welfare or individualism and collectivism. Surprisingly, right-wingers influenced the development of welfare state intensively, even if they were not in favor of public

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