Hostname: page-component-586b7cd67f-2plfb Total loading time: 0 Render date: 2024-11-24T03:43:25.416Z Has data issue: false hasContentIssue false

Evaluation of the Post-War Increase in Social Welfare Spending*

Published online by Cambridge University Press:  20 January 2009

Abstract

American social welfare spending, broadly defined, increased faster than GNP in the years 1950 to 1978. The extra spending was directed mainly at the traditional welfare population categories of the aged, disabled, and female family heads. The extra funds were provided chiefly by payroll taxes and wage diversions. The social benefits that flowed from the extra social welfare spending include improved economic security and reduction in income poverty. These benefits, which are non-quantifiable, are supplemented by the quantifiable addition to GNP which arises from a more highly-educated labour force. The quantifiable social costs associated with the extra social welfare spending include a loss of potential GNP due to induced reduction of hours at work and extra resources used up for education and health care. The reader's judgement of the worth of the non-quantifiable social benefits is critical to his or her overall evaluation.

Type
Articles
Copyright
Copyright © Cambridge University Press 1985

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

Aaron, H.J. (1982), Economic Effects of Social Security, Brookings Institution, Washington.Google Scholar
Bixby, A.K. (1983), ‘Social welfare expenditures, fiscal year 1980’, Social Security Bulletin, 46:8, 917.Google Scholar
Boulding, K.E. (1973), The Economy of Love and Fear: A Preface to Grants Economics, Wadsworth, Belmont. Calif.Google Scholar
Cohn, E. (1979), The Economics of Education, Ballinger, Cambridge, Mass.Google Scholar
Danziger, S., Haveman, R.H. and Plotnick, R. (1981). ‘How income transfer programs affect work, savings and the income distribution’, Journal of Economic Literature, 19:3, 9751028.Google Scholar
Denison, E.F. (1979), Accounting for Slower Economic Growth: The US in the 1970s, Brookings Institution, Washington.Google Scholar
Eisner, R., Simons, E.R., R.J. Pieper and Bender, S. (1981), ‘Total incomes in the United States, 1948 to 1976’, Northwestern University, Evanston, Ill., preliminary mimeo.Google Scholar
Feldstein, M.S. (1974), ‘Social security, induced retirement and aggregate capital accumulation’, Journal of Political Economy, 82:5, 905–26.CrossRefGoogle Scholar
Journal of Social Policy (1982). Vol. 12, Part 2 is largely devoted to discussion of ‘Freedom and the welfare state’.Google Scholar
Lampman, R.J. (1984), Social Welfare Spending: Accounting for Changes from 1950 to 1978, Academic Press, New York.Google Scholar
Leimer, D.R. and S.D. Lesnoy (1982), ‘Social security and private saving: New time-series evidence’, Journal of Political Economy, 90:3, 606–29.CrossRefGoogle Scholar
Masters, S. and Garfinkel, I. (1977), Estimating the Labor Supply Effects of Income-Maintenance Alternatives, Academic Press, New York.Google Scholar
Munnell, A.H. (1982). The Economics of Private Pensions, Brookings Institution, Washington.Google Scholar
Rawls, J. (1971), A Theory of Justice, Harvard University Press, Cambridge, Mass.CrossRefGoogle Scholar