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Pros And Cons Of A Welfare State

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Pros And Cons Of A Welfare State
Consequences of a Welfare State
While researching texts written about the twentieth century welfare, I found that several authors are against the whole idea behind it, because in its basic concept welfare mean spending resources on citizens that are less successful in life, and who cannot depend on themselves to survive financially. The problem is evident when the government does not have a good plan to spend these resources, the consequences of these actions affect the middle-class and the lower-class, creating a financial crisis in the country. Since the welfare state uses deficits, the consequence is the excess of expenditures over revenue. In other words, "Much of the American welfare state has been financed by deficits, that is, by increases
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To begin with, welfare state programs deters private savings and reduces labour supply, and requires increasing taxes to finance them the program. After a while, people will find this rise of taxes a hit to their pockets. The most common way to feel this impact is in daily expenditures. If a person nowadays spends a hundred dollars in groceries, after a while that person will spend a hundred and twenty dollars in that same products, adding more and more value to those same products, and thus devaluating the money people own. It is known that a welfare state benefits different parts of society between the range of health, education, and social protection, "Social Security and Medicare account for three-fifths of federal welfare-state expenditures and for one third of all welfare-state expenditures in the country" (Lemieux, 228). Thus the money spent in Social Security and Medicare stays there, not as if it will be spend, for example, in infrastructure, something that can be seen. Again, the excess of expenditures that does not have profits creates debt

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