By Ian Gough, Alfred Pfaller, Goran Therborn
The authors learn how the us, nice Britain, France, Sweden and Germany have answered to the expanding problem of foreign festival because the mid-1970s. except in Sweden, the pursuit of competitiveness has undermined fiscal and social citizenship rights, and this has, in Britain and the united states, engendered an attack upon the assumption of the welfare nation. team spirit and social self-discipline may be seriously verified if the welfare kingdom is to stay economically and politically conceivable in a hugely aggressive sleek world.
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Additional info for Can the Welfare State Compete?: A Comparative Study of Five Advanced Capitalist Countries
Yet at any given moment there can be considerable deviations from the factor price level which would correspond to the countries' 'true' competitiveness. We can approach the measurement problem from another angle. Competition in the most immediate meaning of the word is a struggle for the capture of purchasing power, or in other words for market share. Thus, the competitiveness of countries can be expected to show in their world market shares. Ideally this concept includes all Alfred Pfaller with Ian Gough 19 foreign markets and the respective home market.
If, for example, rigid high wages prevent many unemployed finding work in ill-remunerated service jobs, average productivity per employed person will be higher than if this were not the case. If a country provides work for many additional job-seekers (for example, baby-boomers or immigrants) this depresses its overall productivity growth. Eliminating low-productivity jobs boosts productivity even if output decreases. One way of taking these considerations into account is to look at the manufacturing sector only and to disregard services, which provide the bulk of jobs that can be created rapidly without much investment.
In other words, productive competence can more easily go elsewhere and can less easily be counted upon to 'bail out' the costs of welfare statism. Another significant contextual change is the end of the post-war syndrome of growth-conducive conditions (cf. Anell, 1987). Within this syndrome, welfare statism may be seen as having been functional because it formed an essential part of that quid pro quo which facilitated a relatively smooth, frictionless social process of production. The alternative was disruptive class conflict.
Can the Welfare State Compete?: A Comparative Study of Five Advanced Capitalist Countries by Ian Gough, Alfred Pfaller, Goran Therborn