2208/DSoc Soc 2090 Study Question, Lecture 12 1. OECD data show that the United States has relatively high levels of inequality and poverty compared to other advanced industrialized countries. Discuss how the welfare regime in the U.S. differs from the welfare regime in many other industrialized countries. Address both the ideological differences as well as the differences in spending patterns in different areas that affect inequality. Why have inequality-reducing programs failed to receive much support in the United States? States (nations/countries) shape inequalities of opportunities and outcomes o Directly (taxation/redistribution) o Indirectly (provision of services, labor market rules, funding for education, etc.)
How welfare regime in U.S. differs from the welfare regime in many other industrialized countries Liberal welfare regime: U.S. (also Canada, Australia) Underlying principle: o Sanctity of the market (market rules all) o Attainment reflects successes/failures in market State-provided welfare benefits are o Means-tested with strict entitlement rules o Modesty sized o Stigma-generating (with receiving welfaresomething you did wrong to be on it) Resources to opportunity-leveling programs (should provide resources that level the playing field as opposed to pumping money in welfare programs that raise incomes) Morals of the system o Adults should be self-reliant o Generosity should come from within (philanthropic giving is very high in U.S. rather than other countries, if you are very well-off you should want to help others) o Individual liberty should be protected from the state (the individual needs to be free from the stateprotected from the imposition of behaviors from the state) o The market should be protected from the state Other welfare regimes Conservative welfare regime (Germany, France, Italy, Austria) Underlying principle
o States and corporate entities (occupations, unions) provide basic human services State-provided welfare benefits o Preserve status differentials Benefits greater for higher-status workers Modest redistributive impact o Preserve traditional notion of family State steps in only when the family fails Standard male bread-winner family is encouraged (tend to be given to the male to make sure that he is working and working in a job that allows him to support his family) No state-sponsored child care, or maternity leaves that allow women to take time off with pay Morals of the system o Individuals serve the family o Liberty means protection from the threats of the world o State serves families Assists individuals whose families fail No universal provision of certain rights or goods (in direct contrast to third and final welfare option) Not designed to give something to everybody, not designed to reduce inequality Social democratic regime (Denmark, Norway, Sweden, Netherlands) Underlying principle: a rising tide lifts all boats (if you can improve the lot of everyone in society than everyone in society is better offincrease resources for collectivity and then share those sources) State-provided welfare benefits o Provided universally Maximizes dependence on the state Creates widespread support for a state-based welfare system o Substantial in size o Designed to ensure high employment Morals of the system o Collectivism pursued because everyone is presumed to benefit o Aggressive egalitarianism: no special favors Taxes on the average worker are relatively low on the liberal welfare state (30%), much higher in social democratic states (50%) NB if you have nearly full employment, the taxes on the average worker can actually be lower Further ideological differences as well differences as in spending patterns that affect inequality:
NB: -
Many countries that have conservative welfare regimes dont have the change in church and state Get countries with family-oriented religious beliefs in ways that are not as familiar to us
Poverty reduction Regimes have consequences for inequality o Outcomes o Opportunity Different levels of funding for poverty reduction o Reflects different visions of role of state o Reflects morals/ideology of the nation - In Liberal-based, poverty addressed more in terms of putting people on an equal footing so that if they fail it is not the states fault - Social Democratic: addresses poverty in order to reduce inequality - Conservative: doesnt address inequality at all Equality of Opportunity Conventional wisdom: o Greater public funding of education should reduce class-based inequalities in outcomes Regime-based predictions o Social democratic: low SES effect on test scores o Liberal welfare regimes: medium strength between family background and test scores (on one hand, we think class matters but also believes in merit, everyone has a chance etcnot the case that money is funneled to the rich families) o Corporatist: strong (in part because provision of services is very much family based, not intended to equalize anything) To the extent that families with high SES are given opportunities to attend good schools Liberal regimes (e.g. US) o Show anticipated funding balance More for schools (pre-[labor] market) Less for post-market outcomes (e.g. poverty) o Consequences for inequality mixed Anticipated modest reductions in poverty Butalso modest effect on leveling playing field
NB: Graph shows that money that countries put into education really doesnt improve test scores all that muchchallenges conventional income
Flat Broke with Children, Hays In the U.S., welfare regimes suggest that needy adults simply need a push to seize opportunities o If they dont make it, its because they didnt try hard enough Welfare laws have done little to address the underlying causes of the strains that the adults are in need of o Welfare reforms have allowed more profitable labor market conditions for companies o Living wage? Belief that welfare will fix these adults value system: Us vs. them dichotomy Incarceration, Unemployment, and Inequality, Western Investigates U.S. incarceration and it affect on unemployment Incarceration has: o Lowered conventional measures of unemployment by concealing joblessness o Increases unemployment by curtailing the job prospects of exconvicts o Depends economic inequality because of its effects on young, black, unskilled men In the U.S., criminal justice policy constitutes significant state intervention The evidence suggests that the U.S. prison system may be exercising a systematic influence on large-scale patterns of economic inequality Why have inequality-reducing programs failed to receive much support in the U.S.? My opinion: - Belief in the power of the market combined with a fear of a regulated market - Adults should be self-reliant o Belief that inequality is needed to encourage people to work hadFischer et al - Individuals should be protected from the state - Belief in the American Dream - Belief in Supply side economicsFischer et al - Belief that we must have inequality for overall growthFischer et al - Lack of understanding in the degree to which policies affect inequality o Eg. Inequality by Design Fischer et al Americans have created the extent and type of inequality we have, and Americans maintain it Importance of policies Implication: Intentional policies could change these conditions if we became aware of the problem