Myths about the liberal welfare state Cover Image

Mity wokół liberalnego państwa dobrobytu
Myths about the liberal welfare state

Author(s): Ryszard Kowalski
Subject(s): Economy
Published by: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
Keywords: INNOVATIONS; CREATIVE DESTRUCTION

Summary/Abstract: Some economists argue that there is an intrinsic conflict between economic efficiency and reduction of inequality (or the size/generosity of the welfare state). The liberal welfare regime is characterized by low public social spending and great income inequality. Therefore, it can be regarded as a better option for economic and non-economic reasons than the social democratic or conservative model. However, this neoliberal dogma is reproduced more by faith than by evidence. The results of econometric studies are mixed, and provide no overwhelming evidence that low social welfare spending leads to higher growth rates. Nor is it evident that the level of income inequality affects GDP one way or another. Finally, intergenerational mobility is lower in countries with wider income inequality.

  • Issue Year: 2011
  • Issue No: 168
  • Page Range: 316-325
  • Page Count: 10
  • Language: Polish