Welfare State Crisis: Public Spending Analysis
The Crisis of the Welfare State
The pact that went home to the welfare state after World War II, which generated positive results, is broken. The reference to the social crisis of the state is very global. Analysts do not consider the State as a macroinstitution. No wonder that the policy is within the area of welfare and loses the perspective of the entire state.
1. On Public Spending Growth
In connection with the crisis of the welfare state, it is often pointed out first to do with public spending. It acquired a new account from Keynes’s proposals. Looking at historical data, you can see that there is a tendency of growth of the state, although there are substantial fluctuations. Moreover, it is necessary to note that social accounting systems may lead to disagreements about the magnitudes of which we speak. Many of the transfers go to families and societies. But the consolidation of the institutional framework of the welfare state has been an increase in public spending. One can see that in most developed countries, the more democratic and public spending increases, there is a relationship between the economic process and the political process, cultural and ideological, and political decision-making processes play a key role. It can analyze any conventional classification of public spending, according to state functions. Or to split the expenditure between compulsory regulation and social welfare expenditures, the former being related to economic growth and the latter with social and political reasons.
The basic costs are:
- Health
- Social Security
- Education
- Housing
- Social Protection and Promotion
Others are:
- Urban and Regional Planning
- Environment
- Water Infrastructure
- Leisure
- Culture
- Community Welfare
The welfare state is an open process. Even in the seventies, the problem was social security. But expenses have grown more than the basics have been more controversial as they are by some sectors. It is worth recalling the variability of what is meant by welfare. So everyone agrees on the need to maintain the core. The problems have become more evident by the effects of the economic crisis, fiscal crisis, and growing deficit. In all countries, the rate of economic growth has decreased, unemployment and inflation and external imbalance have increased. Today, we know that the post-World War II are unrepeatable, notes that the effects of the war itself probably had much to do with the subsequent phenomenal growth. Some authors follow the theory that business cycles relate the crisis to the exhaustion of such cycles. Other authors, the great problem of the Western economies, would be the stress from the Welfare State, which could only be reduced with the State address so that political decisions allow some countries to address the crisis better than others. The problematic situation of the economy is influenced by the concrete measures taken and results that fail so that the government strategy must be appropriate and achieve the agreement of the sectors involved.