Why we need an allocative (and resourceful) welfare state

Celia Lessa Kerstenetzky ()

Brazilian Journal of Political Economy, 2021, vol. 41, issue 4, 745-759

Abstract: In this essay, I propose an agenda for the welfare state of the 21st century thatemphasizes its role as a mechanism of resource allocation. Since social and environmentalproblems are getting out of hand, the time for mere compensation is over: we need amechanism for directly influencing systems of production and patterns of consumption inthe direction of addressing those problems. This partially translates into a decisive sectoralshift towards public social services led by the welfare state. Among the advantages of thismove, in addition to more socially balanced outcomes, are quality jobs and fulfillment ofsocial needs in an environment-friendly way. The allocative task which gives the welfare state a constitutive role in shaping the socioeconomy complements its classic function as problemfixer. The allocative welfare state must be prepared to limit the domain of market allocation. JEL Classification: I38, J08, P16.

Keywords: welfare state; allocation; public social services; sustainability (search for similar items in EconPapers)
Date: 2021
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