What is a welfare state?

The welfare state p.198-203

Learning goals
You are be able to:
• mention the definition of a welfare state.
• mention the four functions of a welfare state and recognize the functions in
a given context.
• mention the social basic rights (and duties) and recognize them in a given
context.
• compare and contrast three economic systems of planned economy, free
market and mixed economy.
• compare and contrast three models of welfare state (Anglo Saxon,
Rhineland and Scandanavian model).
• give your opinion about the welfare state.
Welfare state
The government plays an active role in ensuring the
welfare and well-being of its people.
> Main focus on: (Health)care
Education
Social security
Central idea: Sharing the risks
Welfare states developed in some countries:
Rule of law > Democracy > Free Enterprise in a
Mixed Economy > Welfare state
https://www.youtube.com/watch?v=9CDLoyXarXY (0.59.59 - 1.02.50 Tony Benn)

It’s a collective interest to share the risks.

The government organises this and enforces solidarity.
Four functions of the welfare state:
• Insurance function (verzekeren)
• Care function (verzorgen)
• Improvement function (verheffen, empowerment)
• Bonding function (verbinden)
Rights and duties
The government should obey the law and strive to provide for:
• employment
• social security
• healthy environment
• public health and adequate housing
• education.

Duties for citizens are to obey the law and pay taxes and
premiums (‘premies’) for benefits.
 Three economic systems
ALTERNATIVE ECONOMY FREE ENTERPRISE
COLLECTIVE SECTOR

PLANNED

PRIVATE SECTOR
ECONOMY MIXED ECONOMY FREE

c
MARKET
ECONOMY
Three Economic systems
• Planned Economy:
State ownership of the means of production and the government
distributes the work to be done. Example: Sovjet Union
communism. Main value: equality.
• Free Market Economy:
The government does not take an active role in the economy.
Private enterprise is everything. Example: this exists no where. Main
value: freedom.
• Mixed Economy:
Free enterprise but the government sets boundaries for market
forces and interferes in the economy. Example: NL, US. Main values:
freedom and equality.
For the nuance…
* There is another economic system that doesn’t fit the scheme in slide
6 and that is Anarchism. Anarchists want a small scale alternative
economy without a government and without private property. All
means of production should be collective.
Three types of welfare state
The Scandinavian welfare state

The Anglo-Saxon welfare state

The Rhineland (or corporatist) welfare state

 Scandinavian model Rhineland model Anglo Saxon model
welfare state welfare state welfare state
Main focus Flexicurity Social security Self sufficient,
private initiative
Regulation labour Flexibel labour market
market
Level of social Strong social security,
security investment in
employability
Tax burden High
Women’s Relatively high
participation in
labour market