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Welfare State Crisis 1970

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(1970s- Era of welfare state challenges) • A series of developments predicted welfare state crises, cutbacks and retrenchment • The irreversible nature of welfare state expansion could no longer assumed • Why's the 1970s crisis different? ○ Historically there has been references to welfare state crisis (See Pierson, 2006:144-145) ○ What was the significant about 1970s was the convergence of Crises/Challenges • Convergence of crisis ○ Economic § Economic recession in the 1970s: rising level of unemployment and inflation, decline in tax revenue. § Rising costs of welfare state: Continuous demand for additional social expenditure and new services. § Globalization: Limited the policy scope of national governments ○ Social

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