Welfare State
Do welfare states boost economic growth, or stunt it? It’s not an easy question to answer. The evidence suggests it’s a wash – the positive and negative effects balance out.
The same basic idea links every welfare state: that the ultimate responsibility for ensuring people don’t starve on the street should lie not with family, or charity, or private insurers, but with government. This idea is not without its enemies. It is possible, after all, to mother too much. Every parent instinctively knows that there’s a balance: protect, but don’t mollycoddle; nurture resilience, not dependence. And if overprotective parenting stunts personal growth, might too-generous welfare states stunt economic growth?
Producer: Ben Crighton
Editors: Richard Knight and Richard Vadon
(Image: Frances Perkins, Credit: Getty Images)
Last on
Sources and related links
Kirstin Downey - The woman behind the new deal: The life and legacy of Frances Perkins - Social Security, Unemployment Insurance, and the Minimum Wage, Anchor Books, 2010
Living Standards, Poverty and Inequality 2016 - UK Institute for Fiscal Studies
The work versus welfare trade-off: Europe
The Welfare State in Europe: Visions for Reform - Chatham House
EU deal: What David Cameron asked for...and what he actually got - The Telegraph
A Conservative case for the welfare state, Bruce Bartlett - Dissent Magazine
World Wealth and Income Database
The town with no poverty - Evelyn L. Forget, University of Manitoba, February 2011
Universal Basic Income is ahead of it's time (to say the least) - Bloomberg
The Case for Free Money: Why don't we have universal basic income - New Yorker
Broadcasts
- Sat 7 Oct 201702:50GMTBBC World Service except Online, Australasia, News Internet & UK DAB/Freeview
- Sat 7 Oct 201719:50GMTBBC World Service except East and Southern Africa, News Internet & West and Central Africa
- Mon 9 Oct 201703:50GMTBBC World Service Online & UK DAB/Freeview only
Podcast
![]()
50 Things That Made the Modern Economy
The stories of inventions, ideas and innovations which helped create the economic world

