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KEYNES WELFARE STATE AND ITS CONTEMPORARY TRANSFORMATIONS

Zagorka Brunsko ; Faculty of Tourism and Foreign Trade Dubrovnik

Abstract

Welfare state was the result of an attempt to alleviate the consequences of the Great Depression of 1929-33 and it's greatest development occurred in the period after World War II. The father of the idea of state interventionism is John Maynard Keynes, but the origins of welfare state can be found much earlier in pre-capitalist societies. Keynes's welfare state had a fundamental role of redistributing income (the state regulates unequal market income distribution through certain redistribution policies and budgeting). However, in time the role of the state becomes much more comprehensive, tying together various sectors of economy with a variety of political and economic interests. The state takes over a whole
array of non-economic functions (public services). The crisis in traditional state interventionism began to be felt in the 1970s with causes that should be sought in the modern structure crisis that had afflicted the developed parts of the world at that time as well as in the steady increase in government expenditures. Contemporary welfare state transformations are stimulated by technical progress. The goals, forms and mechanisms of state interventions are changing. In these new conditions, the state intervenes less in the economic domain and
more in other areas of social life.

Keywords

Hrčak ID:

222275

URI

https://hrcak.srce.hr/222275

Publication date:

2.10.1996.

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