Chapters (Layout Features)

The Welfare State in the Twenty First Century

Stiglitz, Joseph E.

Designing the twenty-first-century welfare state is part of a broader debate redefining the role of the market, the state, and “civil society”—non-state forms of collective action. One of the tenets of the Reagan-Thatcher revolution was questioning the welfare state. Some worried that the financial burdens of the welfare state would drag down growth. Some worried about the effect of the welfare state on the sense of individual responsibility, others that the welfare state provides an opportunity for the lazy and profligate to take advantage of hardworking citizens. A sense of social solidarity had united citizens around the world during World War II. Some thirty years after that global conflict, that solidarity was eroding, and economic arguments quickened its disintegration. Even two decades after the doctrines of the Reagan-Thatcher revolution of the 1980s had taken root—and long after its shortcomings had become obvious—others argued that the welfare state had contributed to the euro crisis. This chapter argues that these arguments criticizing the welfare state are for the most part fallacious and that changes in our economy have even increased the importance of the system. It then describes some of the key elements of a twenty-first-century welfare state.


  • thumnail for The Welfare State in the 21st Century.pdf The Welfare State in the 21st Century.pdf application/pdf 2.9 MB Download File

Also Published In

The Welfare State Revisited
Columbia University Press

More About This Work

Academic Units
Initiative for Policy Dialogue
Published Here
February 5, 2019


Also published as Roosevelt Institute Working Paper, June.