Teaching Comparative Government and Politics

Monday, May 02, 2011

The shrinking of the social welfare state

Since one of the practice questions I posed for students preparing for the Advanced Placement exam (at Studying Comparative) asked about differences between neo-liberal governments' approaches to public policies and social democratic governments' policies, this article from The Washington Post seems an appropriate review.

Europeans shift long-held view that social benefits are untouchable
From blanket health insurance to long vacations and early retirement, the cozy social benefits that have been a way of life in Western Europe since World War II increasingly appear to be luxuries the continent can no longer afford.

Particularly since the global economic crisis erupted in 2008, benefits have begun to stagnate or shrink in the face of exploding government deficits. In effect, the continent has reversed a half-century history of continual improvements that made Western Europe the envy of many and attracted millions of immigrants from less fortunate societies…

Western Europe’s generous welfare programs had generally been embraced by the right as well as the left. Against that background, the new wave of cutbacks seems to signal a dramatic shift in attitude toward benefits that many Europeans had come to see as a birthright and that politicians of any stripe could challenge only at the risk of their careers…

In a measure of the shift, Manuel Valls, a presidential hopeful in France’s Socialist Party, challenged party doctrine recently by declaring that it should not make an issue of preserving the 35-hour workweek if French factories have to compete with Chinese factories where the workweek starts at 60 hours and goes up from there. In Denmark, Prime Minister Lars Loekke Rasmussen rattled many in that icon of Scandinavian cradle-to-grave welfare by suggesting Danes should work longer before retiring, to peel back the deficit by $2.8 billion…

France, emblematic of Europe’s social advances, has considered a generous protection system part of the landscape ever since Charles de Gaulle embraced a program put forward by Communist resistance groups immediately after World War II. With subsequent additions under the Socialist Party’s two turns in power since then, including the 35-hour workweek and more vacation time, the welfare state has since been taken to a level that made this country the envy of many.

When the global crisis hit, the French social protection net — which helps push government expenditures to 54 percent of gross domestic product — cushioned people from the worst effects. But now, as Europe struggles to return to growth, conservatives in and outside the government have said the protections are threatening the health of public finances and holding back the economy...

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