On the Damaging Side Effects of the Welfare System: How, Why and What to Do
The welfare system, the system of entitlements and mandates aimed at protecting citizens from poverty, occupies a distinctive place in political economy. Most of the programs are relatively new as economic institutions go, the earlies ones having taken form only a century ago, and they have spread like wildfire, far ahead of economists’ capacity to understand the range of their costs alongside their benefits. As I see it, however, recent advances in theoretical understanding offer a warning that many welfare programs, in their present design and scale at any rate, are doing serious damage to western economies. At the same time these advances point to a reform in the tax financing of welfare programs and to further initiatives toward increased wages and employment that would serve to control the damage.
KeywordsEurope Income Rium Defend Lost
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