1. Why was 'a welfare state' introduced after the War (note here that the term welfare state is in inverted commas - i.e. think about to what extent it was, and was considered by contemporaries to be a welfare state.

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        Tutorial Week 6: Welfare State

  1. Why was ‘a welfare state’ introduced after the War (note here that the term welfare state is in inverted commas – i.e. think about to what extent it was, and was considered by contemporaries to be a welfare state.

Note that the word welfare state is in inverted commas. This is because there has been widespread debate on the right definition of a welfare state. The word itself comes from the German word ‘Wohlfahrstaat’ – used to express the inadequacies of the social reforms introduced in 1920s Germany. Wolhlfahrstaat ‘welfare’ remains today a mainly derogatory term used to express centralised means-tested benefit. The term ‘social service state’ was coined by Beveridge as a response to the something-for nothing connotation related to a welfare state. Recently ‘social security’ has been used in the US, to express the same thing. Historically, the US Government’s low expenditure on social services and dependency on a private health care means the country is not generally considered a fully functioning welfare state. There are various political and historical undertones embedded with ‘welfare state.’ We have no choice but to enter the world of normative economics and have a bias view of its meaning.  The term ‘welfare state’ has undergone various evolutions that are historically and economically flexible. It envisages a set of ideals rather than an entity or set model. In this case we will stick with the following definition for the sake of comparative analysis. A welfare state occurs where it is the Government’s responsibility to protect its citizens against an inadvertent loss of income through possible subsidies and the provision of social services such as health, education and housing – at the highest standard possible.  

 

8th July 1948 is deemed the day the British welfare state was created. This ‘historic day’ was when five different legislations came into operation; National Insurance Act, National Assistance Act, the National Health Service, Town and Country Planning Act and the Children Act. The American historian Peter Baldwin has compared the event as no less significant or important than the French or Russian revolution. It would however be incorrect to set this day as the start and origination of the welfare system. The social rights and ideals had evolved much earlier but only made history on the 8th of July.  The day when every man, woman and child would be insured against every eventuality from ‘the cradle to the grave.’ For the first time people were released from the fear of poverty, a limiting factor to the potential growth and development of a country. More significantly a number of factors from 1942 to 1948 accelerated the process of Government intervention in the free-market for greater equity. The collective impulse brought about by the Second World War, the rise to power of the labour party and the launch of Beveridge’s report all acted as a precursor to the welfare state. These factors facilitated an evolving process and established the beginning of a welfare state designed to protect individuals.

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The Second World War brought about a collectivist attitude among the British people. The war exposed poverty, malnutrition and rampant illiteracy previously hidden from the Government or its people. On a wider scale, the war brought with it misery for all and a greater level of equality in deprivation and economic levelling. Higher taxes were imposed on disposable income, wage rates exceeded the inflation rate and unemployment had been abolished. People from all walks of life, rich or poor were brought together to serve in the armed forces, spend time in the bomb shelters, or experience evacuation and rationing. A greater ...

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