Lecture slides for 'Political Economy of Welfare' lecture for MA Social Policy Analysis module

1. Political Economies of Welfare Social Policy Analysis

3. Part I – Context

6. Part II - History

15. Part III - Theorisations

19. Keynesian Welfare National State Keynesian Full employment Closed economy Demand management Welfare Welfare rights National Primacy of national scale State Mixed economy State corrects market failures Keynesian Welfare National State Schumpeterian Workfare Post-national Regime Keynesian Full employment Closed economy Demand management Schumpeterian Innovation and competitiveness Open economy Supply side policies Welfare Welfare rights Workfare Social policy subordinated to economic policy Downward pressure on social wage Attacks welfare rights National Primacy of national scale Post-national Hollowing out State Mixed economy State corrects market failures Regime Increased role of governance mechanisms to correct market and state failures

20. Part IV – Exploring Change

27. "The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed, the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back... Sooner or later, it is ideas, not vested interests, which are dangerous for good or evil." — John Maynard Keynes

28. ‘ Policymakers customarily work within a framework of ideas and standards that specifies not only the goals of policy and the kind of instruments that can be used to attain them, but also the very nature of the problems they are meant to be addressing. Like a Gestalt , this framework is embedded in the very terminology through which policymakers communicate... and it is influential because so much of it is take for granted... I... call this interpretive framework a policy paradigm’ Hall (1993: 279) <

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30. < number of votes left right A B median Party Competition Model Scenario B

32. Public expenditure as a proportion of national income has more or less reached the limits of acceptability. Constraints on ‘tax and spend’ force radical modernisation of the public sector and reform of public services to achieve better value for money Blair & Schroeder <

33. “ Beveridge, like most of his contemporaries, was committed to full employment, delivered by Keynesian demand management. The assumption of enduring full employment held good during the 1940s and 1950s… [but] began to come apart as early as the 1970s… Today the assumption has completely broken down. Globalisation has placed a premium on workers with the skills and knowledge to adapt to advancing technology” Blair <

34. ‘ a significant redrawing of the boundaries of state activity. Rather than providing a generous safety net for the unemployed… New Labour sees the state’s role as stimulating their re-entry into the labour market’ Glyn and Wood <

35. “ In the economic sphere, looks to develop a wide-ranging supply-side policy, which seeks to reconcile economic growth mechanisms with structural reform of the welfare state. In the information economy, human (and social) capital becomes central to economic success. […] The principle ‘wherever possible invest in human capital’ applies equally to the welfare state – which needs to be reconstructed as a ‘social investment state’.” Giddens <

36. ‘ Third way politics, as I conceive of it, is not an attempt to occupy a middle ground between top-down socialism and free-market philosophy. It is concerned with restructuring social democratic doctrines to respond to the twin revolutions of globalization and the knowledge economy ’ Giddens <

37. ‘ If the paradigm ‘ain’t broke’, radical ideational suggestions to ‘fix it’, existing in the form of circulating ideas and other forms of political discourse, will not find practical expression within purview of the state. Only when a status quo is considered ‘broke’, and economic needs and political demands require change, can ideas be advanced to dramatically ‘fix’ it.’ Heffernan (2002: 750) <

38. ‘ Politics finds its sources not only in power but also in uncertainty – men collectively wondering what to do... Governments not only ‘power’’... they also puzzle. Policy making is a form of collective puzzlement on society’s behalf.’ Heclo (1974: 305) <

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