The Transformation of Welfare States?

Total Page:16

File Type:pdf, Size:1020Kb

The Transformation of Welfare States? The Transformation of Welfare States? This accessible work provides a ‘political sociology’ of welfare states in industrial societies, with both historical and contemporary perspectives. Ellison focuses on the social and political underpinnings of a number of welfare regimes and looks at the transformations they have undergone and the challenges they face. This book assesses current debates about the role of ‘globalization’ in welfare state change, paying particular attention to contemporary views about the capacity of embedded institutional structures to limit the effects of global economic pressures. Ellison assesses the changing nature of social policies in nine OECD countries – selected to include ‘liberal’, ‘social democratic’ and ‘continental’ welfare regimes. Taking labour market and pension policies as the main areas of investigation, this volume provides ‘snapshots’ of welfare reform in each case, charting the ways in which different regimes ‘manage’ the range of challenges with which they are confronted. Ultimately, the book suggests that all contemporary welfare regimes are experiencing a level of ‘neoliberal drift’. As yet, this trend towards liberalization remains constrained in those countries with more ‘coordinated’ economies and institutionalized forms of social partnership – but the question is for how long? This book will be of great interest to students and scholars of International Politics, Sociology and Social Policy. Nick Ellison is Senior Lecturer in Sociology and Social Policy at the University of Durham. He has published widely in the area of the politics of social policy. The Transformation of Welfare States? Nick Ellison I~ ~~o~;J;n~~;up LONDON AND NEW YORK First published 2006 by Routledge Published 2017 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN 711 Third Avenue, New York, NY 10017, USA Routledge is an imprint of the Taylor & Francis Group, an informa business Copyright © 2006 Nick Ellison Typeset in Baskerville by HWA Text and Data Management, Tunbridge Wells The Open Access version of this book, available at www.tandfebooks.com, has been made available under a Creative Commons Attribution-Non Commercial- No Derivatives 4.0 license. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Ellison, Nicholas, 1952– The transformation of welfare states? / Nick Ellison. p. cm. Includes bibliographical references and index. 1. Public welfare. 2. Social policy. 3. Welfare state. 4. Globalization– Social aspects. I. Title. HV31.E553 2005 361.6´5–dc22 2005007664 ISBN 13: 978-0-415-14250-2 (hbk) ISBN 13: 978-0-415-14251-9 (pbk) For Sarah and Hannah Contents vii Contents List of tables viii Preface ix 1 ‘Globalization’, institutions and welfare regimes 1 2 The challenge of globalization 23 3 Globalization and welfare regime change 48 4 Towards workfare? Changing labour market policies 77 5 Labour market policies in social democratic and continental regimes 100 6 Population ageing, GEPs and changing pensions systems 126 7 Pensions policies in continental and social democratic regimes 152 8 Conclusion: elfareW regimes in a liberalizing world 178 Bibliography 195 Index 215 viii List of tables Tables 1.1 Welfare regime indicators (1980) 19 1.2 Production regimes: labour market indicators (1980) 20 2.1 Exports and imports as percentage of GDP 30 2.2 Growth of manufacturing production and exports in newly industrializing economies 31 2.3 Cross-national variation in globalization 35 2.4 Stocks of outward FDI by major investing economies, 1960–94 35 2.5 Stocks of inward FDI by host economies, 1960–94 35 2.6 Gross capital inflows 38 4.1 Growth of long-term unemployment as a percentage of total unemployment in OECD countries 79 4.2 Employment in services as a percentage of civilian employment 80 4.3 Female labour force as a percentage of total labour force 80 4.4 Part-time employment as a percentage of total employment and women’s share in part-time employment 82 6.1 Old age pension spending as a percentage of GDP in selected OECD countries, 2000 127 6.2 Old age dependency ratios in selected OECD countries 129 6.3 Life expectancy at birth (years) in selected OECD countries 132 6.4 Pension fund assets as a percentage of GDP in selected OECD countries 132 Preface ix Preface For well over a decade now, a good deal of scholarly attention has been paid to welfare state ‘crisis’ in the ‘advanced’ capitalist democracies. Much of this intellectual effort has been fruitful – at least in the sense that possible causes of welfare state ‘retrenchment’ have been thoroughly discussed and awareness of the challenges that face mature welfare systems has consequently increased. Understandably, however, in view of the complexities involved, there is little consensus either about the root causes of welfare state change, or the extent of change itself. Disagreements can be quite fundamental. Few concessions are given, for example, by those who believe that ‘globalization’ lies at the root of the problems that so many welfare systems are encountering, or by their critics, who are equally convinced that global pressures exercise relatively little influence over welfare state change. Whether economic ‘globalization’ encourages a ‘race to the bottom’ as national governments cut social spending and liberalize their welfare arrangements in an effort to attract inward investment remains a serious point of contention. Nevertheless, there is a sense in which the ‘great globalization debate’ has moved on from the height of its influence in the early-to-mid 1990s. What has been rather mischievously referred to as ‘business school globalization’ appears to be on the wane – outside business schools at least – and, increasingly, attention is being given to other factors not directly associated with this phenomenon – rapid population ageing or changing patterns of employment, for instance. More recently, interest has focused on the ability of welfare regimes to resist – or, better, to ‘adjust’ to – the pressures that confront them in ways that preserve their key characteristics. Here the capacity of the institutional structures and assumptions that became so deeply, if differentially, embedded within postwar welfare regimes becomes the focus of interest, the ‘institutionalist’ argument being that they ‘set limits’ to global economic pressures. These issues and debates are the main theoretical concern of this book. To address them adequately ‘globalization’ is ‘brought back in’ as a major phenomenon, the potential influence of which remains of great significance to welfare regime change. But the role of institutions is held to be equally important – the interrelationship between these two poles in different welfare regimes being the main point of attention. This is not purely a book concerned with theoretical accounts of welfare regime change, however. Just as important is the manner in x Preface which social policies in particular welfare systems are changing and what can be said about the causal roles of global, institutional and ‘contingent’ factors as processes of change unfold. To this end, the greater part of this volume takes the form of an extended assessment of social policy change in nine welfare regimes, the focus being on the core areas of labour market policy and old age pensions. Combining conclusions from the theoretical discussion with insights gained from the analysis of contemporary change in different welfare regimes, one contention here is that ‘globalization’ plays a significant, if largely indirect, role in welfare reform – global economic pressures being influenced or conditioned by institutional and other factors. Such a verdict is hardly new, of course: a good deal of the recent literature on welfare state change comes to a similar conclusion. The real issue, however, is that ‘change’ is an ongoing process and, while the pace may be slow, the direction of change appears broadly to favour market solutions. Obviously, such a statement needs to be justified, particularly as it is not suggested here that regimes that are embracing market-oriented change are necessarily doing so with enthusiasm, let alone that the much-heralded ‘race to the bottom’ is ever likely to become a reality. The analysis of theoretical approaches to welfare regime change, which stresses the importance of a ‘weak globalization’ perspective, together with the examination of policy developments and institutional change in the nine case studies provides sufficient evidence to substantiate this claim. In terms of structure, Chapter One sets the scene with an introductory discussion which outlines the main parameters of the debate between globalization enthusiasts and institutionalists, before moving on to examine the concept of ‘welfare regime’ in some detail. Justifications for the choice of countries and welfare areas are provided towards the end of this chapter. Chapter Two examines the globalization thesis more closely, concentrating primarily on the economic dimension, before considering the issue of whether or not global economic pressures are undermining the core institutions of the nation-state. These themes are continued into Chapter Three, but with the focus shifting to debates about the specific impact of global- ization on welfare regimes. This chapter also provides introductory snapshots of the nine case studies, through an initial assessment of their recent political and economic fortunes, including a brief
Recommended publications
  • Varieties of Familialism: Comparing Four Southern European and East Asian Welfare Regimes
    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Saraceno, Chiara Article — Published Version Varieties of familialism: Comparing four southern European and East Asian welfare regimes Journal of european social policy Provided in Cooperation with: WZB Berlin Social Science Center Suggested Citation: Saraceno, Chiara (2016) : Varieties of familialism: Comparing four southern European and East Asian welfare regimes, Journal of european social policy, ISSN 1461-7269, Sage, Thousand Oaks, CA, Vol. 26, Iss. 4, pp. 314–326, http://dx.doi.org/10.1177/0958928716657275 This Version is available at: http://hdl.handle.net/10419/171966 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu ESP0010.1177/0958928716657275Journal of European Social PolicySaraceno 657275research-article2016 Journal Of European Article Social Policy Journal of European Social Policy 2016, Vol.
    [Show full text]
  • Luxembourg Income Study Working Paper Series
    Luxembourg Income Study Working Paper Series Working Paper No. 529 How Can the Decommodified Security Ratio Assess Social Protection Systems? Georges Menahem January 2010 Luxembourg Income Study (LIS), asbl 1 ECONOMIC WELL‐BEING AND SOCIAL PROTECTION IN SOUTHERN EUROPE: CHANGING POLICIES AND TRENDS 15‐16 November 2007, Madrid How can the decommodified security ratio assess social protection systems? Georges Menahem 1 Director of research at CNRS-CEPN, Paris 13 University and IRDES With a view to better assessment of the roles played by social security and social policy in determining well‐being, this presentation introduces the ”decommodified security ratio“ (DSR), an instrument for evaluating an important duty of the social State, namely to maintain and improve peopleʹs economic security. To that end we describe the conventions for its use and analyse its main components in 24 countries in 1999‐2001, by using the wave V of Luxembourg Income Survey database. From an analysis of the sources of economic security we then distinguish five different rationales. What will tomorrowʹs social protection look like? What tools can assist us in shaping it? We may have to rethink social security when we consider the social shifts which we are currently experiencing: changing patterns of work, breakdown in the wage structure, developments associated with unemployment, precarious employment and exclusion, family instability and countless other factors which jeopardize the individualʹs security. In such context, we are more and more allowed to refer to Articles 22 and 25 of the 1948 Universal Declaration of Human Rights emphasizing the need for the individual within a society to have ”economic security”, ”social security” and, very specifically (Article 25), ”security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control”.
    [Show full text]
  • Incomplete Decommodification: Art, State Subsidy and Welfare Economics
    15 Incomplete Decommodification: Art, State Subsidy and Welfare Economics DAVE BEECH Dave Beech is PARSE Professor of Art at Valand Academy, University of London. He is the author of Art and Value: Art’s Economic Exceptionalism in Gothenburg. He is an artist in the collective Freee (with Andy Hewitt and Classical, Neoclassical and Marxist Economics, (2015). He has written widely Mel Jordan), as well as a writer and curator. His work has been exhibited at on the politics of art, including The Philistine Controversy (2002, co-authored the Istanbul Biennial; the Liverpool Biennial; BAK, Utrecht; Wysing Arts, with John Roberts) and Art and Text (2011). He is a founding co-editor of the Cambridge; SMART Project Space, Amsterdam; the ICA, London; Centro journal Art and the Public Sphere (2011-). He also curated the exhibition We Are Cultural, Montehermoso, Vitoria, Spain; the Collective Gallery, Edinburgh; Grammar at the Pratt Institute, New York 2011 (co-curator Paul O’Neill) and International Project Space, Birmingham; and at 1000000mph Gallery, edited a special edition of Third Text on “Art, Politics, Resistance?” (2010). 16 PARSE JOURNAL HE DEVELOPMENT OF WELFARE ECONOMICS socialist movement by guaranteeing national health between 19121 and 19592 not only propelled insurance, a pension, a minimum wage, workplace T unrivalled social reforms that had been regulation, vacation and unemployment insurance, sporadically underway since the 1880s, and not together comprise the historical origin of the welfare only reimagined the state as an economic
    [Show full text]
  • TRANSFORMATIONS Comparative Study of Social Transformations
    TRANSFORMATIONS comparative study of social transformations CSST WORKING PAPERS The University of Michigan Ann Arbor "Consumer Cultures, Political Discourse and the Problem of Cultural Politics" Fraflk Mort CSST Working CRSO Working Paper #86 Paper $482 Consumer Cultures, political Discourse and the Problem of Cultural Politics Frank Mort, Portsmouth Polytechnic, United Kingdom Paper Presented to Session IV of the 'Power' Conference, University of Michigan, USA, January 1992 Every quarter the Henley Centre for Forecasting publishes its survey of leisure in the United Kingdom. A prestige marketing organization, specializing in long-term planning for the consumer industries, Henley has developed a strong - track-record for in-depth social research. One of its survey findings makes particularly depressing, if familiar, reading. Throughout 1986 a sample profile was monitored for their main leisure patterns. What came out top were a list of late twentieth century pleasures which are principally made- available through market based structures: personal shopping, eating take-away meals, DIY, video watching. Right at the bottom of the list came politics. Going to a political meeting ranked on a par with a visit to the circus as one of our last likely things to do! Politics as something pleasurable, as something to do with one's disposable leisure time, it seems, is a decided non-starter. 1 This paper is focused via two inter-related themes touched on by the Henley Centre's survey: the articulation between a series of post-war political discourses and the leisure cultures of contemporary consumer capitalism. The arguments centre primarily on British politics and culture, though many of the debates reviewed present their analysis more globally, speaking of general characteristics of the 'advancedt industrial economies, the 'mature' democracies, and so on.
    [Show full text]
  • By Jennifer M. Fogel a Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy
    A MODERN FAMILY: THE PERFORMANCE OF “FAMILY” AND FAMILIALISM IN CONTEMPORARY TELEVISION SERIES by Jennifer M. Fogel A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy (Communication) in The University of Michigan 2012 Doctoral Committee: Associate Professor Amanda D. Lotz, Chair Professor Susan J. Douglas Professor Regina Morantz-Sanchez Associate Professor Bambi L. Haggins, Arizona State University © Jennifer M. Fogel 2012 ACKNOWLEDGEMENTS I owe my deepest gratitude to the members of my dissertation committee – Dr. Susan J. Douglas, Dr. Bambi L. Haggins, and Dr. Regina Morantz-Sanchez, who each contributed their time, expertise, encouragement, and comments throughout this entire process. These women who have mentored and guided me for a number of years have my utmost respect for the work they continue to contribute to our field. I owe my deepest gratitude to my advisor Dr. Amanda D. Lotz, who patiently refused to accept anything but my best work, motivated me to be a better teacher and academic, praised my successes, and will forever remain a friend and mentor. Without her constructive criticism, brainstorming sessions, and matching appreciation for good television, I would have been lost to the wolves of academia. One does not make a journey like this alone, and it would be remiss of me not to express my humble thanks to my parents and sister, without whom seven long and lonely years would not have passed by so quickly. They were both my inspiration and staunchest supporters. Without their tireless encouragement, laughter, and nurturing this dissertation would not have been possible.
    [Show full text]
  • The Adaptive State 24/11/03 5:38 PM Page 1
    The adaptive state 24/11/03 5:38 PM Page 1 About Demos Demos is a greenhouse for new ideas which can improve the quality of our lives. As an independent think tank, we aim to create an open resource of knowledge and learning that operates beyond traditional party politics. We connect researchers, thinkers and practitioners to an international network of people changing politics. Our ideas regularly influence government policy, but we also work with companies, NGOs, colleges and professional bodies. Demos knowledge is organised around five themes, which combine to create new perspectives. The themes are democracy, learning, enterprise, quality of life and global change. But we also understand that thinking by itself is not enough. Demos has helped to initiate a number of practical projects which are delivering real social benefit through the redesign of public services. We bring together people from a wide range of backgrounds to cross-fertilise ideas and experience. By working with Demos, our partners develop a sharper insight into the way ideas shape society. For Demos, the process is as important as the final product. www.demos.co.uk The adaptive state 24/11/03 5:38 PM Page 2 First published in 2003 © Demos Some rights reserved. See copyright licence for details ISBN 1 84180 115 1 Typeset by Land & Unwin, Bugbrooke Printed by Hendy Banks, London For further information and subscription details please contact: Demos The Mezzanine Elizabeth House 39 York Road London SE1 7NQ telephone: 020 7401 5330 email: [email protected] web: www.demos.co.uk The adaptive state 24/11/03 5:38 PM Page 3 The Adaptive State Strategies for personalising the public realm Edited by Tom Bentley James Wilsdon PostScript Picture (Demos logo.lge.eps) The adaptive state 24/11/03 5:38 PM Page 4 Open access.Some rights reserved.
    [Show full text]
  • Department of Economics
    DEPARTMENT OF ECONOMICS Working Paper The Self-Inflicted Dimensions of Puerto Rico’s Crisis Argeo T. Quiñones-Pérez Ian J. Seda-Irizarry Paper No. 02, Fall 2017 The Self-Inflicted Dimensions of Puerto Rico’s Crisis “Puerto Rico requires a labor policy directed towards converting us into an attractive jurisdiction for establishing businesses and for creating opportunities of employment in the private sector”- Francisco Montalvo Fiol, coordinator for the Coalition of the Private Sector, January 4, 2017. Introduction The decade long socio-economic depression through which Puerto Rico is passing has caught international attention, with characterizations such as “the biggest default in U.S. municipal bonds market history” or “the Greece of the Caribbean” feeding the imagination of those that seek explanations to understand it. Local and foreign bondholders, a pro-austerity government, and a fiscal control board have all become the major protagonists in a story of social decomposition in a nation that was once thought to be a model for capitalist industrial development and social welfare. For many within Puerto Rico, past concerns and fears associated with achieving political independence from the United States, fed in large part by decades of cold war propaganda, have become very real under the colonial status. The poverty level is three times that of the United States, the island is among the most unequal nations in the world, and the emigration waves have surpassed those of the 1950s to the point that the island is being depopulated. The unhindered mobility of the “factors of production,” i.e. capital and labor, that for decades has characterized the business environment in the island has not produced the dynamic and long term economic growth, or convergence with the metropolis, that some economic theories and models would have predicted.1 Not surprisingly many explanations have been put forward to understand the causes of the crisis in Puerto Rico.
    [Show full text]
  • LIS Working Paper Series
    LIS Working Paper Series No. 766 Income, Familialism and Women’s Economic Independence Kaitlin Alper June 2019 Luxembourg Income Study (LIS), asbl Income, Familialism and Women’s Economic Independence Income, Familialism and Women’s Economic Independence Kaitlin Alper Abstract This paper explores the dynamics of women’s economic independence at the individual household level and its relationship to country-level income distributions. I posit a nega- tive relationship between income and women’s economic independence. Using detailed household-level data from the Luxembourg Income Study (LIS) across thirteen advanced capitalist democracies, I show that women at upper ends of the income distribution con- sistently have less within-household economic independence than do their counterparts at the bottom of the distribution. I then show that this negative relationship is sensitive to political characteristics at the country level. In countries whose policies support a male breadwinner model, women’s economic independence is lower across the board than in other types of countries; in gender egalitarian countries, it is higher. Family policies do not, however, have a significant impact on the income stratification of women’s eco- nomic independence. These results suggest that social policy characteristics and labor market dynamics have important implications for gender equity both within and between households. 1 1 Introduction Over the past three decades, income inequality has been increasing throughout the advanced capitalist world (Piketty, 2014). For women, gendered income inequality in partic- ular has significant sociological implications, including unequal division of household labor and increased likelihood of abuse within relationships (Kalmuss and Straus, 1982; Brines, 1994; Macmillan and Gartner, 1999; Morris, 1990).
    [Show full text]
  • On Parliamentary Representation)
    House of Commons Speaker's Conference (on Parliamentary Representation) Session 2008–09 Volume II Written evidence Ordered by The House of Commons to be printed 21 April 2009 HC 167 -II Published on 27 May 2009 by authority of the House of Commons London: The Stationery Office Limited £0.00 Speaker’s Conference (on Parliamentary Representation) The Conference secretariat will be able to make individual submissions available in large print or Braille on request. The Conference secretariat can be contacted on 020 7219 0654 or [email protected] On 12 November 2008 the House of Commons agreed to establish a new committee, to be chaired by the Speaker, Rt. Hon. Michael Martin MP and known as the Speaker's Conference. The Conference has been asked to: "Consider, and make recommendations for rectifying, the disparity between the representation of women, ethnic minorities and disabled people in the House of Commons and their representation in the UK population at large". It may also agree to consider other associated matters. The Speaker's Conference has until the end of the Parliament to conduct its inquiries. Current membership Miss Anne Begg MP (Labour, Aberdeen South) (Vice-Chairman) Ms Diane Abbott MP (Labour, Hackney North & Stoke Newington) John Bercow MP (Conservative, Buckingham) Mr David Blunkett MP (Labour, Sheffield, Brightside) Angela Browning MP (Conservative, Tiverton & Honiton) Mr Ronnie Campbell MP (Labour, Blyth Valley) Mrs Ann Cryer MP (Labour, Keighley) Mr Parmjit Dhanda MP (Labour, Gloucester) Andrew George MP (Liberal Democrat, St Ives) Miss Julie Kirkbride MP (Conservative, Bromsgrove) Dr William McCrea MP (Democratic Unionist, South Antrim) David Maclean MP (Conservative, Penrith & The Border) Fiona Mactaggart MP (Labour, Slough) Mr Khalid Mahmood MP (Labour, Birmingham Perry Barr) Anne Main MP (Conservative, St Albans) Jo Swinson MP (Liberal Democrat, East Dunbartonshire) Mrs Betty Williams MP (Labour, Conwy) Publications The Reports and evidence of the Conference are published by The Stationery Office by Order of the House.
    [Show full text]
  • A Capitalist Road to Communism,” Theory and Society 15 (5), Pp
    COMMENT Basic Income as a Socialist Project Erik Olin Wright University of Wisconsin, Madison In the seminal paper that launched the contemporary discussion of basic income, “The Capitalist Road to Communism” (1986), Robert van der Veen and Philippe Van Parijs argue that socialism is an unnecessary stage between capitalism and communism. Following Marx, they defined “socialism” as …a society in which workers collectively own the means of production – and in which therefore they collectively decide what these should be used for and how the resulting product should be distributed, namely according to the principle “to each according to his labor”. Communism, in contrast, …is defined by the distribution principle “from each according to his abilities to each according to needs” – which implies at least that the social product is distributed in such a way (1) that everyone’s basic needs are adequately met, and (2) that each individual’s share is entirely independent of his or her (freely provided) labor contribution. (Van der Veen and Van Parijs, 1986, pp. 636–637). The central principles of communism, they argue, can be constructed inside of capitalism through the institution of a generous basic income grant that distributes a significant part of the social product on the basis of need, and that frees people from the obligation to perform labor in order to receive a reward. Collective ownership of the means of production is an unnecessary detour. In this paper I will explore a complementary problem: in what ways might Basic Income be seen as a structural reform of capitalism that would facilitate a movement in the direction of socialism? It may be that to a meaningful degree the distributional principles of communism could be instituted within capitalism in the form of a generous unconditional basic income, and thus socialism may not be a necessary condition for significant advance on these principles.
    [Show full text]
  • The Costs of Corporate Welfare
    March 2016 The Costs of Corporate Welfare Bob Dick Introduction Over the last four and a half decades, government spending in the Keystone State has risen dramatically. Consequently, Pennsylvania workers now labor under one of the highest tax burdens in the country. Of the last 46 state budgets, only one did not increase total spending.1 This explosion has been fueled in part by special subsidies doled out to select businesses, creating an economic system favoring the privileged few at the expense of everyone else. Matt Mitchell, in his 2012 paper, Pathology of Privilege, explains the danger of such government favoritism:2 Privileges limit the prospects for mutually beneficial exchange—the very essence of economic progress. They raise prices, lower quality, and discourage innovation. They pad the pockets of the wealthy and well-connected at the expense of the poor and unknown. When governments dispense privileges, smart, hardworking, and creative people are encouraged to spend their time devising new ways to obtain favors instead of new ways to create value for customers. Privileges depress long-run economic growth and threaten short-run macroeconomic stability. The evidence in this paper mirrors many of Mitchell’s findings. Government favoritism stunts economic growth, misallocates resources, and leads to higher tax bills. By ending government favoritism and moving toward a tax system devoid of special treatment for moneyed interests, lawmakers can improve the state’s business climate and create opportunities that will lead to better lives for all Pennsylvanians. For reformers, the best place to begin is with the $700 million in special subsidies identified in the 2015-16 budget.3 Regrettably, Gov.
    [Show full text]
  • Decommodification and Self-Organization in Housing
    Resources Ivo Balmer, Tobias Bernet Housing as a Common Resource? Decommodification and Self-Organization in Housing – Examples from Germany and Switzerland 1 Introduction Housing is something intimate. One could say that our homes represent a ‘third skin’ after clothing. Like clothes, shelter is regarded as a basic human need. Since this does not automatically translate into universal access in a less-than-perfect | downloaded: 28.9.2021 world, the provision of such basic goods is a fundamental political issue. A wide range of answers to the housing question have been developed in different times and places depending on the economic conditions and political hegemony. Both the market and the state have been hailed as the primary provider of housing and, even though the ‘third sector’ has mostly played a rather marginal role, there are noteworthy traditions of philanthropic and especially of self-help (cooperative) ini- tiatives in housing. The latter are certainly worth discussion in the context of the current ‘rediscov- ery’ of the commons, as is the field of public housing. In this chapter, we will attempt to sketch a typology of housing tenure and provision from a ‘commons per- spective,’ examining to what extent housing can be seen as a common resource within different institutional arrangements. We will do this by analyzing a number of contemporary examples from Germany and Switzerland, two countries that are known as ‘tenants’ nations’ by virtue of having some of the lowest rates of own- https://doi.org/10.7892/boris.70441 er-occupied homes among industrialized countries,1 and which thus represent a specific arena of marked contestations within the housing sector.
    [Show full text]