Title: THE WELFARE AND THE ECONOMIC GROWTH: TWO FACES OF THE SAME COIN
Abstract: 1. IntroductionThe model of welfare expresses the values of social welfare (universalism, solidarity, social justice) and reflects the state's role in social protection. The state is the guarantor of a fairness social protection and has a founding role of an effective system which answers to the needs and the social realities of each society. The influence of the mechanisms regulating the economy, the size of the private and public sector, and the balance between market and state define the different models of social welfare.Along with the establishment of democracy and the market economy, expanding social protection systems are an essential component of the European model of society. Since the last decades of the nineteenth century, the welfare systems have played an important role in the modernization of European countries in order to reduce constraints resulting from the economic cycle, to stimulate population growth and, last not least, to support the transition from agriculture model to the industrial society.The development of the extensive social protection systems in order to protect people at risk and to answer to the social needs has been a predominant feature of postwar European societies. European systems have been set differently in terms of organization and financing methods, reflecting the cultural, historical, and institutional differences. The sequence in the evolution and the development stage of every European nation's social policy have influenced the current stage of the social protection systems.2. The evolution of the concept of social welfareGreat economists like Adam Smith, John Keynes were concerned about the of nations. The promoter of classical economics, Adam Smith, analyst of competition and growth, emphasized that both market and competitions play an important role in improving the welfare of nations, by giving motivation and economic force. Thus, the productive and innovative potential of the economy can be fully used for achieving growth and wealth.It is obvious that the concept of market economy arises from socio-economic legitimacy of the competition involving everyone in the production and consumption of wealth. It raises the question whether the distribution or the redistribution of wealth boost productivity. Therefore, to fulfill this purpose the state must allow and promote resource distribution both efficient and equitable.Representing the modern stage in economic science, Leon Walras (1874) has reformed the idea that the role of each individual and the state do not oppose each other, but complement each other, each having its scope. According to Walras (1874), the state is responsible for ensuring the general conditions of common existence to all citizens, and the individual must obtain through its work and skills and his own welfare. Walras (1874) underlined that state should balance the rights of the individual with the state functions.Subsequently, in the evolution of economic thought an important role had John Stuart Mill, who is one of the promoters of the social market economy. Mill (1888) is committed to reforms and even proposes a social-liberal social policy. It shows that a propriety system that ensures increasing material wealth at the expense of freedom is doomed sooner or later to failure.In the modern stage, John Keynes has revolutionized the entire economic theory by promoting an active state intervention in economy. The advocates of the welfare state that are based on Keynesian solution, propose high public spending to finance important public investments for economic development.Keynes's followers underline the importance of the salary in the distribution of goods. Securing a job is a first step in improving living conditions. Membership in a union provides individuals the opportunity to participate in decision-making system at the micro level. So, the employment on the one hand provides the foundation for a decent standard of living and on the other hand the socio-economic rights. …
Publication Year: 2015
Publication Date: 2015-12-01
Language: en
Type: article
Indexed In: ['doaj']
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