In the post-war period, spending on social security, health and
education has grown continuously in the leading industrialized
countries. The considerable size of this spending as a percentage
of GDP together with the ageing population raise doubts on the
sustainability of welfare spending. These doubts have been
accompanied in recent years by an increasing awareness of the
allocational inefficiencies and the distributive inequalities
caused by the provision of some social services. The welfare state
should therefore be reconstructed not only through readjustment of
the social security system but also a change in unemployment
benefits and the taxation of workers to avoid the perverse spiral
that may be produced in the future by cuts in welfare benefits,
growing unemployment and the need to further reduce the social
security services.
General
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