European social model Free health care free education subsidized housing guaranteed pensions unemployment insurance daycare services cid 127 maternity and paternity leave cid 127 Welfare state high taxes high government expenditure government provides essential services to citizens rationale correction of market inefficiencies and failures variety of national models different national social models Scandinavia social democratic welfare model universal and generous social services UK liberal welfare model universal but limited benefits cid 127 Germany conservative welfare model social services depend on individual income special benefits for families traditional values similar model as France France conservative welfare model similar to Germany s emphasis on dirigisme capitalist market economy industrial planning governments took leading role in economy nationalization public ownership of key industries social service provision welfare state US economic support cid 127 Marshall plan European integration founding of the European Communities in 1950s relied on consensus by political parties on right and left widespread corporatist arrangements for social partners plan worked Economic growth backlash and reform cid 127 W Europe experienced explosive growth until 1973 slowing down of economic growth in early 1970s high unemployment rates aging of Western European societies calls for reform of the welfare state began in the UK cid 127 Margaret Thatcher economic support and incentives for key industries national champions heavy government regulation of economy origin of ESM european social model developed as part of a three pronged strategy for western european recovery after WWII cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 prime minister 1979 1990 conservative party Thacherism cut taxes to stimulate growth privatization reduce spending on social services ended corporatist arrangements attacked the nanny state emphasis on market and individual responsibility controversial figure challenge of the welfare state influenced politicians elsewhere in Europe Tony Blair and New Labor party UK Prime Minister 1979 2007 liberal third way political and economic philosophy advocates middle ground between social democracy and free market relies on provision of opportunities rather than provision of services political and economic success for Labor Party reform in Germany negative impacts of reunification on Germany economy and rest of Europe supported by social democratic and Green party coalition 1990s multiple unsuccessful reform efforts cid 127 Gerhard Schroeder cid 127 German chancellor 1998 2005 social Democrat Agenda 2010 reform launched in 2003 reduced government spending for services cid 127 more individual spending for services relaxing of labor laws easier to fire employees than it was in the past justification list to fire someone is shorter easier don t have to pay compensation as generous as previously echoes Thacherism reform in Sweden successfully implemented trimming down of generous social benefits cid 127 main core remains intact continues to be successful and competitive advantage emphasis on services rather than reforms in France cid 127 met limited levels of success privatizations trimming down social benefits labor market reforms 200 law 35 hour work week little success in generating growth and reducing unemployment Angela Merkel vs Peer Steinburck cid 127 German Chancellor elections Kaltenhaler and Ceccoli research questions what explains support for the welfare state in western Europe what explains variation in welfare state support among European countries big picture cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 perceptions of individuals explain support for welfare state who do citizens consider responsible for an individual s welfare government or individual citizen perceptions distributional economic considerations people with higher incomes are less supportive of a strong welfare state people from a higher social class are less supportive of strong welfare state people with more skills are less supportive of a strong welfare state employed individuals will be less supportive of a strong welfare state than the unemployed people who vote for parties of the right will be less supportive of strong welfare state than those on the left people who vote for parties of post mateiral values new left will be less supportive than people who vote for parties with a materialist agenda new people who are moren willing to accept risk will oppose a strong welfare state and emphasize personal responsibility people who trust other people will be more supportive of a strong welfare state social democratic governments in Scandinavian countries have been implementing market oriented reforms dismantling welfare state reform is strategic move to maintain legitimacy of welfare state response to popular demands for decreased government management of certain policies political considerations right psychological reasons Kiltgaard why no Sweden Denmark school system 1988 1991 increased decentralization of educational decisions city and local government levels individual schools more discretion on curriculum voucher program for private schools unemployment benefit reforms 1993 1998 cid 127 maximum compensation period restricted to 7 years then 5 condition for benefits 52 weeks of prior employment prior employment not subsidized by government program down from 26 reforms because Sweden complaints about lack of individualized education Denmark complaints about free riders social democratic governments acted to address these concerns and maintain legitimacy of welfare state cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid 127 cid