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