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State
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First, the welfare state is not a subject apart, but fits naturally into the framework of economic analysis. Secondly, the theoretical arguments support the existence of the welfare state not only for well known equity reasons but also - and powerfully - in efficiency terms.
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In a world of certainty, the welfare state has only a small role.
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We need a welfare state of some sort for efficiency reasons, and would continue to do so even if all distributional problems were solved.
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There is an efficiency case for an institutional welfare state.
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A 'socialist' country like Sweden has a highly articulated welfare state; Denmark and New Zealand (which are not highly industrialized) were among the first countries with a public system of old-age pensions; and Saskatchewan was the first Canadian province to have publicly organized health insurance.
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The welfare state is the outcome of diverse forces over nearly four centuries of developing social policy.
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It is the welfare state that has made capitalism, with all its attendant benefits of economic growth, politically feasible...
Nicholas Barr
Quote of the day
Nobody ever did anything very foolish except from some strong principle.
William Lamb, 2nd Viscount Melbourne
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