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30 Cards in this Set
- Front
- Back
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citizenship / social class
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TH Marshall - citizenship implies equality. the context for this definition is coming out of WW2.
robert castel - welfare state gives workers same basic security as middle class prop owners The British working class social citizenship evolved in this from civil rights in the 1820s, 1830s (this was given to trade unions: right of association, right of speech, petition). Then the political rights of right to vote, forming political parties were given to Brit workers in the 1870s and 1918. 1949 social citizenship was granted - this was the equality of opportunity, security - aftermath of WWII; working class used civil rights and political rights to gain social rights. This was the guarantee of job protection against catastrophe. The idea is that the welfare state blurs the distinction between social classes. It's not about redistribution or equality of outcome, it is the "equalization not within classes but of all citizens”. |
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war / welfare state
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The welfare state was an equalizing of risk among all citizens, and in war, all men are considered equal.
War was one of the three Ws - along with woe and workers. Total war then is equated to total citizenship. WWII fueled the ideology of social citizenship because it gave the sense of shared plight or sacrifice and there was also the fear of class conflict. Common war citizenship then created the space for common social citizenship, and this idea is encompassed in the idea of the welfare state. Britain was seen to have been a success during the war in their spending, so people were more comfortable with mass spending. (taxes were already so high...) WWII's benefits for the welfare state: gov't military spending helped end the Great Depression, Government ran the economy well as it shifted to war production War politicians could cut high wartime taxes but still keep them high enough to pay for the welfare state. |
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earnings-related pensions / cross -class coalitions
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social democracies - cross-class coalitions were formed to stabilize democracy.
1950 - worker-farmer alliance. income based coalitions is one reason why blue collar / white collar formed a coalition. cross-class coalitions helped to stabilize democracy and prop up democracy in the face of communism and fascism The idea of benefits proportional to earning helped lock in the middle class -farmers were shrinking. The welfare state of the 1930s was rather meager, barebones, v. low level of sustenance. This was okay for the working class, but the middle class had no real draw to support it. Pensions were a very big deal and were a very powerful way to build support. |
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keynesianism / automatic stabilizers
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Keynesianism says that gov spending can stimulate purchasing power: government spends money on roads, railways, canals, airports, schools, etc. give money to the poor - they are most likely to spend it. WW2 validated this theory.
Keynes advocated that government spending could act as a stabilizer The welfare state acts as an "automatic stabilizer" because it didn't need to be enacted through policy and therefore had less of a chance of getting caught in gridlock. Welfare state policies automatically increase spending during a recession and decrease spending in a recovery (more people unemployed, welfare state spends more). Euro recessions were shorter and less deep than US recessions because of the welfare state. In the US, Obama had to fight very hard for a stimulus package. |
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open economy / welfare state
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A common misconception of the welfare state is that it inhibits a country’s economic competitiveness.
However, Rodrik argues that trade openness increases economic volatility and instability of markets. markets creates winners and losers. in order for losers to not block market, provide them with welfare benefits. So social actors in markets push gov to provide more social protection = welfare state. Rodrik established a causality between the size of welfare state and degree of openness of the economy. big governments actually support big markets – the most open economies have the biggest welfare state. positive sum relationship. Some of the economic gains from the openness of the economy go to help pay for the welfare state. polanyi - dual movements. first move is to create the market, then create the welfare state. |
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social protection / welfare state
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the welfare state are social benefits provided by the state.
social protections: welfare state benefits + benefits from other sources like employers... in most countries these are synonymous, but in the US they are very different. 4 distinct features of US system of social protection - limited gov spending bc of private sector, dualism in concentrated benefits (old and young adults), private provision (like with 'hidden' benefits) and private systems of benefits prove to be regressive and vulnerability -- private welfare states often have gaps in coverage. Public welfare states are vulnerable because they can lack supporters (for ex: middle class). |
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Bismarck / Beveridge
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Bismarckian welfare state was paternalistic, used to keep traditional social order. He cracked down on socialists and unions, but then as a “carrot”, began a welfare state. Bismarck granted citizens social rights before granting them political and civil rights
Beveridge was more egalitarian and believed that it was time for social rights because citizens already had received political and civil rights. Three Ws as origins of welfare state. The Us as backbone - unity, uniformity and universality |
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De-Commodification / Socialism
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De-commodification reduces worker dependence on the labor market by reversing the trend of labor becoming something that is bought and sold like a commodity (the original sin of capitalism according to socialism)
Socialism, according to the Marxist perspective, entails nationalizing the means of production, distribution, finance and exchange. Social Democracy, which uses decommodification, is a way to help the working class push for greater demands. Esping-Andersen also argues that de-commodification is ‘out-marxing’ Marxists because workers are protected. Could be argued that de-commodification is in conflict with the work line (welfare state only works if everyone works - have money, pressure to work) |
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Conservatism / Big Welfare State
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conservatism: maintenance of traditional institutions and advocates for minimal or gradual change in society.
big welfare state - it does a lot and covers almost all aspects of society ex: Bismarck and Thatcher (handbagging) Can be in the interest of conservatives to have a big welfare state - ex: Germany. Germany’s big welfare state is good to reflect and protect its conservative principles and interests. Earnings-related benefits, fragmented benefits. |
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Social Market Economy / Free Market Economy
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social market: a market economy with a strong social component. (Germany)
The government does not set prices but it does provide vast welfare benefits like pensions and insurance – yet the gov keeps these benefits as private provisions; companies provide and run the services not the gov free market: prices are set by supply and demand, not the government. (US and UK). State does not regulate or intervene into market forces. Golden straightjacket and Margaret Thatcher – remove restrictions on trade, foreign investment, stock etc in order to achieve economic growth. Increase power of the private sector. |
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Redistribution / Means Testing
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redistribution: a process that tries to reduce economic inequalities by transferring payments and distributing wealth amongst the population. done through welfare state and tax system (Progressive tax policies). Myth that welfare states are all about redistribution.
means testing: requirements that individuals have to meet in order to qualify for benefit (usually prove poverty or inability to provide). Issue of a stigma that can arise (ex US) and create inequality. Beveridge was against means-tested programs. Corpi & Palme: the paradox of redistribution, the more you target poverty, the more inequality there is. Means tested programs are a way to redistribute wealth. But there are many more redistribution methods – social security, medicare |
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Globalization / Golden Straightjacket
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globalization: Reduced barriers to flow of goods, services, capital, tech, info and people across borders.
Trade liberalization is occurring where there is a greater competition for jobs Increased capital mobility means there is a reduction of restrictions on moving capital across borders So, govs and unions must placate businesses so they don’t go ‘regime shopping’ TINA argument for the welfare state is in part based on the trend of globalization – increased economic international integration. Friedman -these new rules in the global economy mean the govs must put themselves in a golden straightjacket (shrink government) in order to protect economic growth. (give power to private sector, balance budgets, eliminate tarrifs, deregulate markets, reduce corruption). let the free market reign. Levy - three wrong assumptions: 1) trade openness is not a new thing. countries with big welfare states have always had open economies (rodrik) 2)pressure to cater to business is not a new thing 3) problems with shifting production to lower wage countries (political risks, infrastructure, transport costs) |
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Free Economy / Handbagging
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Margaret Thatcher wanted to liberalize the British economy and create free market, or a free economy.
free market: no gov intervention. increase privatization. deregulate (though thatcher had to re-regulate a little bc private monopolies were taking advantage). Ironically she did this through an expansion of state power. She "handbagged" institutions that were getting in the way of the free market (unions,doctors, teachers) So Maggie would intervene to free up the economy, and then let the economy be. |
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Retrenchment / Govnt Spending as Percentage of GDP
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retrenchment: the shrinking of the welfare state.
Welfare state spending is easier than welfare state retrenchment. Humans have negativity bias, meaning we respond to losses worse than the positivity in our response to gains. concentrated losses - easy to know who is losing. easy for losers to mobilize. however, benefits are dispersed - not just one group. blame avoidance - policy makers dont want retrenchment to be obvious. clayton and pontussen – you cannot measure retrenchment with lower gdp alone. If there is a growing demand but spending stays the same – this could be a sign of retrenchment. Pierson doesn’t take into account incremental changes. he needs a more holistic look at the welfare state size. |
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Retrenchment / Policy Drift
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retrenchment: shrinking of welfare state.
hard to measure. hard to do. hacker – if new social risks emerge but the welfare state doesnt respond, that is retrenchment. (policy drift) Policy Drift is where, over time, policies are not upgraded to meet the new social risks employers are facing austerity and can no longer cover certain ppl, if the govnt doesn’t adjust to cover you, that’s retrenchment. Katrina, gov disasters. new diseases, environmental factors |
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New Politics / Policy Takers
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Paul Pierson’s “New Politics" theory - the politics of retrenchment is different from welfare state expansion.
1) retrenchment is very difficult and politically treacherous. 2) retrenchment takes place, it occurs through “blame avoidance,” that is, hiding or diffusing government responsibility Policy Takers are considered obstacles to retrenchment. groups of individuals called into existence by a policy. Veterans, Senior Citizens. Policy takers are a large reason why new Policy of retrenchment is difficult to do. |
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Privatization / Double Payment Problem
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Privatization is to transfer from public or government control or ownership to private enterprise.
Bush social security plan in 2005 as described in lecture, the case for privatization was that social security as a whole is broken and that privatization was the way to save it Privatization increases individual choice. historically, the stock market has outperformed social security. Double Payment Spending- problem with Privatization. The problem exists during the transition from PAYGO to the private pension system because during the transition, you would have to pay for both current retirees as well as yourself |
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Blame Avoidance / Pension Reform
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Blame avoidance is a tactic used by politicians to retrench. this is a tactic used to conduct pension reform - which is necessary given the impending crisis.
- make policies more complex. - make coalitions to spread blame. - grandfather clauses are another way to put off the heat, bc those who would be more affected by he policy are not subject. Pension reform - very difficult to touch, elderly depend on their pensions (policy takers). |
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National Health Insurance / National Health Service
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NHI - the state is the indirect payer and mandates compulsory health insurance.
sickness funds; private pensions. regulated through corporatist bargaining (unions, doctors). providers and sickness funds negotiate fees and reimbursement rates. NHS - *services - state* PPP the state is the payer, the provider and the financial regulator. health care is paid for by the state. financed through taxation and is free at the point of delivery. state owns the hospitals and employs medical actors. and the gov establishes the annual budget. (UK, Sweden) |
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Health Care Markets / Health Care Inflation
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health care inflation is a problem because health care markets are not typical.
- shifting demographic towards old ppl - constantly evolving technology - third party payers - US system - fragmented purchasers (insurance companies are buying it from providers) - also, fear of malpractice suits and high admin costs = high inflation - basic mission of doctors |
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Socialized Medicine / Patient Protection and Affordable Care Act
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socialized medicine is a derogative term used primarily in the US - based on a fear of gov having complete control over the health care industry and eliminating individual choice.
the closest example to socialized medicine would be a NHS (uk, sweden) where the state is the payer, provider and regulator of health care. the ACA - gives more power to the state to regulate shady practices and protect the consumer. there is no public option - so the state is not the payer or the provider. it does increase medicaid for ppl who arent covered. Much of the discourse around this bill centered on fear of “socialized medicine.” This was able to pass despite fear of socialized medicine because the Obama administration was able to overcome the vast number of VETO POINTS in the US system |
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Citizenship / Women
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Marshall considered citizenship with regards to military service and earn an income. Universal” programs didn’t actually include women – women were supposed to derive benefits from their husbands.
Policy makers and analysts have drawn upon concept of citizenship – as defined by T. H. Marshall – as basis for developing welfare programs Traditional way of examining the need for welfare programs/what types of welfare programs should be implemented do not always account for the needs of women Women must work to fill in gap in labor to provide money to put toward PayGo systems and fill in for the soon to retire baby boomers. |
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Woman-Friendly Welfare State / Sweden
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would be a welfare state in which females are given equal opportunity to work, while at the same time being given benefits to raise a family
Sweden moved away from the male breadwinner model in the 70s with these reforms: - individualized taxation - expansion of public childcare - parental leave - right to reduce workday to 6 hrs -up to 60 days annually to take care of sick children * not done primarily in the interest of emancipating women. had a labor shortage |
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Male Breadwinner Model / Welfare without Work
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male breadwinner model (Germany)
- traditional roles. Man works (high wage) to support wife and children at home - restrictions on standard employment, so little part time - high replacement wage: a level of unemployment benefits which matches what you were earning before to preserve the social heirarchy Welfare without Work: not a lot of job growth because companies cant afford to hire many people. so the outsiders, whose who cant get a job, get welfare without work. |
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European Market Making / Common European Policies
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european market making:
the founding of the common market in 1957. established by the Treaty of Rome. Creation of the single market in 1992. which eliminated non-tariff barriers to trade (health codes, regulation etc) common European policies have helped to improve europe's economic efficiency and productivity. Common Agricultural Policy (CAP), which was established in order to attain French support of the common market European market-making was accompanied by social integration in the form of common policies. Polanyi - Dual Movements. First is the creation of the market, then the welfare state is put in place to protect those from the market |
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Luxembourg Compromise / Europe A La Carte
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Luxembourg Compromise imposed unanimity for 'vital interests.' Imposed by France, entrenched unanimity, but is not a recipe for deadlock.
common policies remain subject to unaniminity rule europe a la carte: New European initiatives became optional, countries choose whether or not to join, but do not have to veto an initiative in order to avoid it. With initiatives being optional, Europe a la Carte has become a way to get around the unanimity rule Many of Europe's most important initiatives have been “Europe a la Carte;” the creation of Airbus airplanes came from an industrial policy, and the euro came about after countries signed on to monetary coordination |
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TINA / Progressive Liberalism
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TINA stands for there is no alternative, signifying Margaret Thatcher’s motto that there is no alternative to Margaret Thatcher’s neoliberal reform method to increase economic growth
- regressive neo-liberal policies -handbagged institutions -privatization -social spending cuts progressive liberalism IS an alternative. HOW a country liberalizes is just as important as whether it does. with progressive liberalism: a state can pursue goals of neo-liberalism (economic growth) in a manner that preserves or even enhances equality and protections for the disadvantaged -progressive spending cuts (vice into virtue) - tax reallocation and reduction (holland) - tax cuts (used to reduce child poverty in UK) |
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Austerity / Vice into Virtue
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Austerity - a set of liberalizing reforms that are social spending cuts.
Vice into Virtue: term coined by Levy that refers to an alternative approach to the left-progressive strategy of austerity. (italy and pension reform in 90s) getting rid of “baby pensions,” making it difficult to evade taxes and ending subsidies to the self-employed and using the money to reduce deficit and qualify for EMU without having to cut useful programs. The vice-into-virtue approach “targets inequities within the welfare system that are simultaneously a source of either economic inefficiency or substantial public spending,” and manipulates them “so as to soften or even obviate the supposedly ineluctable trade-off between efficiency and equity” (Levy 1999: 240). vice into virtue is a philosophy that can be applied to austerity cuts in order to minimize the inequality effect of the cuts. |
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Tax Cuts / Child Poverty (UK)
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Tax cuts – which are branded as a liberal tool – are used by Blair and his Labour government to reduce child poverty in the UK.
Key tax cuts included (1) reducing the amount of income taxes paid by low earners while preserving the top rate at 40% for high earners (example of successful progressive tax relief); (2) tax breaks and credits for low-income, working families (UK version of American EITC) Impact of tax cuts added up to big transfers of wealth to low-income families and reduced child poverty tax cuts can deliver benefits to citizens and be redistributive. progressive liberalism? using tax cuts |
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Thick labor activation market / thin labor activation market
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THIN (favored by neoliberals)
encouraging people to derive their income primarily through paid employment, as well as encouraging people outside the labor force (such as stay at home moms) to join the labor force - instruments which include withdrawing state protections so as to increase work incentives and employment opportunities. - reducing early retirement benefits, tightening eligibility for early retirement, privatizing early retirement programs, and making older workers compete for jobs MORE PUNATIVE THICK (sweden) encouraging people to derive their income primarily through paid employment, as well as encouraging people outside the labor force (such as stay at home moms) to join the labor force -comprehensive and costly policy measures which often replace passive labor programs -expanding services for activated workers, especially children - aligning wages thick Reveals an alternative to harsh neoliberal policies of Thatcher and Regan to liberalize states These policies are often used in combination to activate labor markets – with thick policies often supplementing thin policies. Central claim is that there is more than one way to liberalize. |
