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A welfare state
A
welfare state is a concept of government in which the state plays a key
role in the protection and promotion of the economic and social
well-being of its citizens.
It is based on the principles of equality
of opportunity, equitable distribution of wealth, and public
responsibility for those unable to avail themselves of tljie minimal
provisions for a good life. The general term may cover a variety of
forms of economic and social organization. Under this system, the
welfare of its citizens is the responsibility of the state.
Modem
welfare states include countries such as Sweden, Norway, Denmark and
Finland which employ a system known as the Nordic model. The welfare
state involves a direct transfer of funds from the state, to the
services provided (i.e. healthcare, education) as well as directly to
individuals ("benefits"). The welfare state is funded through
redistributionist taxation and is often referred to as a type of "mixed
economy" in the United States and many other countries.
Under this
method, the government oversees and administers healthcaiie, education,
employment, social security and other resources that help maintain the
standard of living of the state's citizens.
Supplemental Social
Security Income (SSI) is one of these programs. SSI is; a federal income
supplement program funded by general tax revenues, not by Social
Security taxes that was initiated in order to help the less fortunate.
A
basic feature of the welfare state is social insurance, intended to
provide benefits during periods of greatest need (e.g., old age,
illness, unemployment). Such insurance is usually financed by compulsory
contributions and is intended to provide benefits to persons and
families during periods of greatest need. It is widely recognized,
however, that in practice these cash benefits fall considerably short of
the levels intended by the designers of the plans.
The welfare state
also usually includes public provision of education, health services,
and housing. Such provisions are less extensive in the U.S. than in many
European countries, where comprehensive health coverage and
state-subsidized university-level education have been common. In
countries with centrally planned economies, the welfare state also
covers employment and administration of consumer prices. Most nations
have instituted at least some of the measures associated with the
welfare state; Britain adopted comprehensive social insurance in 1948,
and in the U.S., social-legislation programs such as the New Deal and
the Fair Deal were based on welfare-state principles. Scandinavian
countries provide state aid for the individual in almost all phases of
life.
Antipoverty programs and the system of personal taxation may
also be regarded as aspects of the welfare state. Personal taxation
falls into this category insofar as its progressivity is used to achieve
greater justice in income distribution (rather than merely to raise
revenue) and also insofar as it used to finance social insurance
payments and other benefits not completely financed by compulsory
contributions.
In socialist countries the welfare state also covers employment and administration of consumer prices.

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