Erfordernisse und Grenzen staatlicher Risikoübernahme in der Marktwirtschaft

Georg Milbradt and Ministerpräsident des Freistaats Sachsen

Perspektiven der Wirtschaftspolitik, 2005, vol. 6, issue 4, 433-448

Abstract: Abstract: This article deals with three aspects of social security coverage. Firstly, we shall explore to what extent the state should cover private risks through its social security system. Secondly, we discuss the situation in Germany, with special regard to the question whether Germany's current economic problems – stagnation and high unemployment – are caused by the growth of benefits provided by Social Security and the pay‐as‐you‐go funding method. Thirdly, we look at risk coverage from the perspective of political economics. Polls show that the Germans increasingly mistrust the market mechanism. How, then, can the state reduce its coverage of individual risks and harness market forces instead of providing a minimum of social security?

Date: 2005
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