The Modern Welfare State A Comparative Look

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The Modern Welfare State A Comparative Look

• Corresponds with Amenta et. al.
• 8-28-03

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What is Welfare?
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Welfare is an ambiguous term. It refers to

• 1. 'well-being
• people's well-being or interests consist of the
  things they choose to have.
• 2. the range of services provided to protect
  people in certain conditions
• childhood, sickness, old age.
• 3. financial assistance to poor people
• (e.g. Temporary Aid to Needy Families).

http//www2.rgu.ac.uk/publicpolicy/introduction/so
cpolf.htm
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Comparing U.S. European Welfare State Models

• U.S. and European wss are organized on very
  different assumptions, expectations, and
  principles.
• American exceptionalism
• the U.S. welfare state seen as different from its
  European counterparts.
• How does Armenta et. als (2001) argument fit
  into this discussion?

• Source Katz MSU

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The Underlying Logic Of The Us Welfare State

• Dominant presumption in American society,
  (especially strongly held among conservatives)
• all human needs can and should be met through the
  market, and
• those unable to pay for commodities (i.e., goods
  and services purchased on the market) simply must
  forgo them.

• Source Katz MSU

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Survey

• Believe the Government should take steps to
  reduce the income disparity between the rich and
  the poor.
• US Great Britain Germany Italy
• 38 65 66 80

(Source Lipset 1996 in Schaefer 2004198)
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THE UNDERLYING LOGIC OF THE US WS

• Two exceptions to this rule (reliance on the
  market) are sometimes recognized
• 1. Certain goods and services cannot be
  adequately provided exclusively through the
  market because of their very nature.
• Ex. left to itself the market has been able of
  provide adequate health insurance only to those
  old people who are both rich and in reasonably
  good health---clearly a minority.
• Publicly organized, regulated, and partly
  subsidized health care social insurance is needed
  to ensure that the majority of old people are
  covered----hence, Medicare.

• Source Katz MSU

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THE UNDERLYING LOGIC OF THE US WS

• The second exception to market reliance
• 2. Destitute Individuals, unable to work, cannot
  and do not participate in the market economy.
• Unless subsidized by the government, they might
  starve,
• Morally unacceptable in a civilized
  society---hence, public assistance (TANF) and
  Supplemental Security Income (SSI). Stringent
  eligibility criteria.

• Source Katz MSU

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US WS MODEL A MARKET FIRST APPROACH

• THE MARKET FIRST BIAS IS THE KEY TO
  UNDERSTANDING SPECIFIC COMPONENTS OF THE AMERICAN
  WS.

THE MARKET THE KEY U.S. INSTITUTION, WITH
WS PROGRAMS ESSENTIALLY SUBSIDIARY TO AND
SUPPORTIVE OF IT. PREVAILING ASSUMPTION IS THAT
VIRTUALLY EVERY NEED CAN AND SHOULD BE MET
THROUGH THE MARKET SYSTEM, EXCEPT AS NOTED BELOW.
SOCIAL INSURANCE SOCIAL SECURITY MEDICARE ENACTED
BECAUSE OF MARKET FAILURE, I.E., INABILITY OF
MARKET TO PROVIDE FOR BASIC NEEDS IN CERTAIN
SITUATIONS
MEANS-TESTED PROGRAMS TANF (welfare) SSI ASSISTANC
E TO INDIVIDUALS IF DEEMED DESERVING DUE
TO TEMPORARY OR PERMANENT INABILITY TO COMPETE IN
JOB MARKETS.

• Source Katz MSU

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• Which of the following 3 Welfare State Ideal
  Types best fits the US welfare State?

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3 Different Welfare State Regimes

• 1. social democratic regime
• based on the principles of universalism and
  decommodification.
• alleviates workers from inequality based on being
  wholly reliant on labor markets for income.
• most pro-worker
• 2. conservative corporatist regime
• also universal but does not smooth status
  distinctions between groups and upholds the
  traditional family.
• work-oriented and based on individual
  contribution.

Identified by Espin-Andersen, see Amenta et. al.
Also http//www2.rgu.ac.uk/publicpolicy/introducti
on/socpolf.htmmodels
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3 Different Welfare State Regimes

• 3. liberal-type welfare regime
• is designed to make labor markets run smoothly
• (at the expense of workers by forcing them to
  take what these markets offer).
• public social policy has a small presence and a
  large means-tested component, residualist.
• it is augmented by private control over social
  policy areas elsewhere often handled by the state

Identified by Espin-Andersen, see Amenta et. al.
Also http//www2.rgu.ac.uk/publicpolicy/introducti
on/socpolf.htmmodels
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• Decommodify
• - to remove goods and services from the market
  and instead make them readily available to all as
  a right of citizenship---what American social
  policy analysts call entitlements.

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• Residualist approach to welfare.
• Welfare provision is often seen as being for the
  poor. This was the dominant model in
  English-speaking countries the English Poor Law
  (1598-1948) was exported to many other countries.
  
• This has been taken as the model of a residual
  system of welfare, in which welfare is a safety
  net, confined to those who are unable to manage
  otherwise.

http//www2.rgu.ac.uk/publicpolicy/introduction/so
cpolf.htmmodels