Capitalism against theWelfare State: Classical Political Economy
Some thought thewelfare state is incompatible with capitalism. This conviction can be retraced to Adam Smith. He understood welfare as being secured primarily through the market. More clear reason for incompatibility is that without the compulsion to work an efficient market could no longer function because there would remain no
Maximum benefit
Political basis
Suggestion of new ideology
Ideal
Night-watch state
Smallest statetheory
Limitation
Alienation of proletariat in economical
& political side.
Ideal
Free economic activity by the "invisible hand” improve socialwelfare
Minimization of government welfare(public security)
Limitation
The great depression
Widen the gap between rich and poor
the wealthy, developed nations and accepted to OECD. However, the ambitious financial liberalization of president Kim Young Sam had failed miserably. Some scholars claim that the reform had failed due to the absence of thestate intervention and supervision. Regardless of the cause, the reform had failed andthe Korean economy collapsed. Foreign capital outflow was rapid and short term loans coul
the wealthy, developed nations and accepted to OECD. However, the ambitious financial liberalization of president Kim Young Sam had failed miserably. Some scholars claim that the reform had failed due to the absence of thestate intervention and supervision. Regardless of the cause, the reform had failed andthe Korean economy collapsed. Foreign capital outflow was rapid and short term loans coul
andthe poor strata were hardly increased, this problem have influenced on welfare policy of Korea. Unemployment of Korea and national pension was improved, health insurance system was simplified. There were lots of welfare policies in former governments, however, Kim DaeJoong government make real change by positive welfare. Civil organizations greatly developed, presented issues about social wel
Public Policies in Europe
Market liberalism vs. Social democracy
and Features>
Market Liberalism
In the United States, Market liberalism depicts a political ideology, combining free market economy with personal liberty and human rights, supports a more mixed economy with state produced public services. It opposes both equalitarianism and ecumenical familism. Market liberalism
Definiton & characteristic
Social Democracy is a political ideology or system to place emphasis on public welfare rather than the freedom of the individual.
Social Democracy came to power after World War II.
Equality > Economic and Individual’s Freedom Universal Welfare
Political & Historical Background
First Period
SPD had seized power the terms between world war 1 and world war 2
and reprinted in 1957 by Beacon in Boston.
Polanyi’s general arguments:
The development of the modern state went hand in hand with the development of modern market economies and that these two changes were inexorably linked in history(ex. analysis of the Speenhamland laws)
the orthodox liberal account of the rise of capitalism by arguing that “laissez-faire was planned”, whereas social
the family of Scandinavian countries although not located on the Scandinavian Peninsula. The national capital is Copenhagen.
Denmark has been a constitutional monarchy since 1849 and a parliamentary democracy since 1901. The Danish monarchy is the oldest existing monarchy in Europe, andthe national flag is the oldest state flag in continuous use. It joined NATO in 1949 andthe EEC (now the EU
the superficial external dependence. It is increasing its vulnerability to the external environment while the economic structure has changed. In addition to globalization in a rapidly aging nation, and women's expanding participation in the labor market, there are variations in the labor market. The realization of equal socialwelfare, the establishment of industrial democracy and a self-labor mo