Abstract
THE IDEA OF THE WELFARE STATE IS CURRENTLY TREATED with more scepticism across the political spectrum than at any time during its development. Insofar as the institutions of the welfare state were consolidated during the period of Butskellite consensus which lasted until the late 1960s, in the more polarized political climate of today it is now seen on both the Right and the Left to embody many of the failures implicit in that consensus. It was assumed, so it was argued, that the fiscal dividends of growth could be used to increase welfare in a relatively painless way by maintaining the absolute position of the better off and using the dividends of growth via public expenditure on health, education and welfare to improve the relative standing of the worst-off members of society. In this way it was thought that the social and economic rights of citizenship could be extended within a market economy without putting excessive strain on that economy.
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