APOLOGY OF WELFARE STATE AS OPPOSED TO THE INSTITUTIONALIZATION OF INEQUALITY IN THE NEOLIBERAL ORDER

Abstract

Rudimentary social legislation of the 19th century occurs as an answer to enhancing the
social self-consciousness of the disadvantaged. Global wars and the economic depression
in the first half of the 20th century helped to raise awareness of democratic societies about
the need to ensure the social well-being of their citizens. The emergence of the neoliberal
paradigm in the countries of Anglo-Saxon tradition promotes “the contempt for the state”
and “profit search” as the main ideological principles of their public policies. After the fall of
socialism, the doctrine of neoliberalism became the main economic orientation of a global
society, in which international financial institutions played a significant role. In the last four
decades, the well-being and income inequality have risen on an unprecedented scale. The
economic recession of 2008 did not manage to overturn that trend. Recent events in the
United States show signs of re-institutionalization of socio-economic values. The question
arises as to whether those values will be maintained and maybe even expand globally, just
like neoliberalism did at the end of the 20th century. For that reason, the real content of the
welfare state concept must be presented as opposed to the institutionalization of inequality
in the neoliberal order.