October 6, 2026

The Welfare State

The successful model in the West, which we can define as the welfare state, was promoted by the democratic left but was later also adopted by the right. It is a system of economic liberalism tempered by state intervention, with the state redistributing income and managing more than 40% of it.

This model now appears to be in crisis because of economic globalization. It presupposes an essentially national economy, within which laws can be enforced. In a globalized economy, however, these laws cannot be applied effectively, because goods from poorer countries compete with those produced under the welfare state model.