Economic Changes to the Welfare State

Economic Changes to the Welfare State Write a 2000 words essay describing the economic aftermath of the Welfare state in the last century I. Introduction A welfare state is broadly defined as a state in which the government/the public sector undertakes key roles in the production and distribution of economic activities with the objective of protecting and promoting the economic and social well-being of its citizens. A welfare state is essentially a mixed economy type of economic system where the government undertakes a greater proportion of economic activities. This essay describes the economic aftermath of the welfare state in the last century. The essay is organised as follows. Section II focuses on the theoretical foundations of the welfare state, while Section III concentrates on the economic aftermath of the welfare state. Section IV finally concludes the essay. II. Theoretical Foundations of the Welfare State The theoretical foundations described in this essay are from; (a) classical economics, (b) Keynesian economics, (c) Suzumura (1999), (d) Barr (1992), and (e) Heath (2011) Classical economics The classical economists including Adam Smith favoured a minimal role for the public sector. Their preference was for a limited role for the government in the provision of essential public works, the maintenance of law and order, and the defence of the country. They believe that the government’s role is to provide these core activities to provide an enabling environment for the market/private sector to undertake economic activities for economic growth. Keynesian economics Keynesian economics was used to justify an expansion in the economic role of the public sector. Keynesian economics created pressures on the government to stabilise the economy by helping to sustain the disposable income of individuals during cyclical fluctuations. Suzumura (1999) argues that welfare economics plays critical roles in enhancing human well-being and in the design and implementation of welfare state policies. Welfare economics is a normative concept and in general takes account of both efficiency and equity. On equity grounds, society may prefer an inefficient resource allocation for reasons for equity justice and this provides a justification for government intervention in the economy. Suzumura argues that the enlarged concept of welfare economics to incorporate equity justice has also extended the concept of well-being to incorporate/capture the basic considerations as liberty, opportunity and procedural justice and that this widening of the concept of well-being should reflect itself properly in the concept and agenda of the welfare state. Based on this conceptual framework, Suzumura then employs Amartya Sen’s concepts of functions and capabilities as vehicles to examine an individual’s advantages in the welfare s tate. To Suzumura the welfare state consists of one main system of competitive mechanism and three subsystems of (i) the competitive policy subsystem, (ii) the co-ordination policy subsystem, and (iii) the social security subsystem. Suzumura concludes that the task of the welfare economics in the welfare state is to deliberately design the main system and the three subsystems of the welfare state so that the whole system becomes incentive compatible to make it work effectively to maximise the well-being of the individuals in the society in terms of liberty, opportunity and procedural justice. Barr (1992) provides another theoretical foundation of the welfare state. Barr’s thesis and his contribution is on information problems for an efficiency case for various types of state intervention. He identifies two broad types of imperfect information problems leading to market failure in dealing with risks as adverse selection and moral hazard. The insurance industry was the focus of Barr’s analysis. Adverse selection results from asymmetric information between buyers and sellers of insurance, with buyers having more information than sellers and thus making it difficult to establish the ideal price for each individual. These characteristics of adverse selection cause the problems of (i) unstable pooling equilibrium because low risks drop out or because of competitive behaviour by insurers, and (ii) inefficient separating equilibrium, if it exists. Thus, in the face of adverse selection, the market is inefficient, or fails entirely and the state intervenes by making membership compulsory with social insurance as a typical example. Heath (2011) identifies the three normative models as redistributive, communitarian and public economics. The redistributive model describes the redistribution of resources to ensure that the outcomes produced by the market economy are less unequal.. The underlying assumption under the redistributive model is that the market is to maximise efficiency while the state promotes equity through redistribution by allocating initial endowments and adjusting final outcomes. The communitarian model considers the imposition of moral limits on the scope of the market so as to resist the commodification of certain domain of interaction. It is argued under this model that basic human needs should be satisfied through communal provision in which everyone is guaranteed a share rather than through commodification. The public economics model regards the state as correcting market failure, either through regulation, subsidisation and taxation, or the direct provision of goods and services. This model is referred to as the economic model because of the emphasis put on Pareto efficiency and the narrow conception of public goods based on Samuelson’s definition. Under the public economics model, market failure allows for the intervention of the state in economic activities. III. Economic Aftermath of the Welfare State The economic measure of welfare state activities is given by the proportion of public expenditure/spending to the Gross Domestic Product (GDP), that is, as a share of GDP. Gwartney, Holcombe and Lawson (1998) argue that even after providing for a generous definition of the concept of core functions to include (i) the protection of persons and property, (ii) expenditures on national security, (iii) expenditure on education, (iv) expenditure on physical infrastructure, and (v) the operational costs of the central bank to maintain a stable monetary regime; the share of the expenditures on core functions for most developed countries did not exceed 15% of GDP up to 1996. Meanwhile as at 1996, the share of government expenditure as a percentage of GDP was above 45% in most developed countries. The authors argue that this higher percentage above the required percentage for the core functions exerted a negative impact on the economy in terms of slower economic growth. Their findings indicate that a 10% increase in government expenditure as a share of GDP results in approximately 1% reduction in GDP growth. The authors assigned the following reasons for this ou tcome; (i) higher taxes/and or additional borrowing to finance government expenditures impose excess burden on the economy, (ii) as government grows, its productivity declines. This is characterised by the following trajectory – expenditure on core functions increases productivity but expenditure exceeding the core functions leads to diminishing returns and more and more expenditure eventually produces negative returns which leads to productivity declines, (iii) the political process accompanying increased public expenditure inhibits the entrepreneurship that drives economic growth through the discovery process. It is argued that as entrepreneurs discover new and improved technologies, better methods of production and opportunities that were previously overlooked, they are able to combine resources into goods and services that create wealth and economic growth, and (iv) the growth in government expenditure was characterised by heavy involvement in redistribution of income and regulatory activities that encouraged individuals to seek personal income via government favours rather than through production in exchange for income. Eventually resources are shifted from wealth creating activities toward the pursuit of wealth transfer which retards economic growth and generate income levels well below the economy’s potential. Tanzi and Schuknecht (1998) argue that from the late 19th century to early 20th century total government expenditure was less than 12% of GDP with expenditure covering the core functions. In the 1920s, the average total expenditure increased to nearly 20% of GDP. In 1937 public spending went up to an average of 23% of GDP resulting from the effects of the Great Depression. Between 1960 and 1980, there was a rapid increase in public spending from around 28% of GDP around 1960 to 43% of GDP in 1980. They further argue that the increased public expenditure/spending reflecting welfare state activities produced the following effects; (i) growing public spending and debt, (ii) rising real interest, (iii) slower growth, (iv) less attractive investment destination by international investors, even under growing globalisation, growing competition and capital mobility, (v) disincentive effects caused by higher taxation, and (vi) large-scale redistributive expenditures with negative impact on gr owth, employment and welfare. The authors’ table 6 (page 83) provides a comparative analysis on the size of government and economic performance as at 1990 between big governments and small governments. Big governments are equated to states with higher government expenditure, that is, with GDP shares exceeding 40% while small governments show government expenditures of less than 40% of GDP. The main findings were based on the following indicators of economic performance; (i) real GDP growth, (ii) Gross fixed capital formation (in percent of GDP), (iii) inflation (1986-1994), (iv) public debt (in percent of GDP), (v) economic freedom indicator, (vi) size of shadow economy (in percent of GDP), (vii) PPP-based per capita GNP (in US$), and (viii) standard deviation of GDP growth. The summary findings were as follows; (a) real GDP growth over a longer period lower in big government countries and that could account for growing unemployment experienced in welfare states with big gove rnments, (b) GDP per capita based on Purchasing Power Parity (PPP) much higher in countries with small governments, (c) based on the ratio of the standard deviation and the average growth rate (the coefficient of variation), there was no evidence that higher public spending leads to more stable growth (i.e no evidence that welfare states exhibited more stable growth rates). This indicator was to provide evidence on one of the main justifications of Keynesian economics that growing public spending is needed for a stabilisation policy to reduce fluctuations in growth over the business cycle, (d) gross fixed capital formation and inflation did not show much difference across groups of countries (i.e both big and small governments recorded almost the same rates), (e) public debt averages almost 80% of GDP in countries with big governments in 1990 – leading to the payment of considerable risk premiums on public debt obligations (higher real interest rates), (f) economic freedom in countries with big governments worse than countries with small governments, and (g) a strong correlation between spending by governments (and corresponding taxes) and the size of the shadow economy (almost 18% of GDP for big governments compared with 9.4% foe small governments in 1996). The authors recommend that fiscal reforms and lower public spending are needed in many countries with big governments in order to increase economic growth without sacrificing much social and economic well-being. IV. Conclusion In the current globalised world where technology is making major strides, the role of the state should be significantly different from the role played to the end of last century. The economic aftermath of the welfare state in the last century indicates that to increase economic growth, the state should now play a more significant and intelligent regulatory role of providing a level playing field which allows the private sector to expand to areas traditionally undertaken by the state. The role of the state in income redistribution and in providing safety nets is very important but needs reassessment by policymakers. Targeted coverage and not universal coverage is what is needed and with the concept of redistribution narrowly defined to avoid many inefficient policies pursued under the justification of redistributing income. REFERENCES Barr, Nicholas, â€Å"Economic Theory and the Welfare State: A Survey and Interpretation†, Journal of Economic Literature, Vol. 30, No. 2 (Jun. 1992); pp 741-803 Gwartney, James, Holcombe, Randell, and Lawson, Robert, â€Å"The Scope of Government and the Wealth of Nations†, Cato Journal Vol. 18, No. 2 (Fall 1998); pp 163-190 Heath, Joseph, â€Å"Three Normative Models of the Welfare State†, Public Reason, 3 (2), 2011; pp 13-43 Suzumura, Kotaro, â€Å"Welfare Economics and the Welfare State†, Review of Population and Social Policy, No. 8, (1999); pp 119-138 Tanzi, Vito and Schuknecht, Ludger, â€Å"Can Small Governments Secure Economic and Social Well-being?† Fraser Institute, 1998 YAW BEDIAKO

A Lesson Before Dying Essay

â€Å"A Lesson Before Dying† takes place in a small Louisiana Cajun community in the late 1940’s. In the novel, Jefferson, a young black man, is an unwitting party to a liquor store shoot out in which three men are killed; being the only survivor, he is convicted of a murder and sentenced to death. To portray this novel Gaines displays respectable literary devices like setting, tone, and characterization; therefore helping I as the reader feel the emotions of Jefferson from his point of view. In the initial setting of the novel, Jefferson sits in a courtroom located in rural Louisiana, which is filled with anger, tension, isolation, and quietness from the people in the room. This setting of the book supports Jefferson’s personality in chapter nine when Jefferson’s character is introduced. Jefferson’s cell could be considered the second setting or Jefferson’s setting in the book. Jefferson’s relationship to the courtroom (initial setting) supports Jefferson’s personality in the prison. He is isolated just like in the courtroom. â€Å"There was an empty cell between Jefferson and the rest of the prisoners† (Gaines 71). Jefferson’s cell was not only isolated like a courtroom in rural Louisiana, but quiet. â€Å"Jefferson’s been quiet . . . He didn’t answer† (Gaines 71). Due to Jefferson’s isolation and quietness, he has built anger inside. An anger which had been building up since the courtroom conviction. â€Å"Nothing don’t matter,† he said looking up at the ceiling. The first setting of the novel is similar to Jefferson’s cell setting. The three settings: The courtrooms, location and time era of the town, and prison all have similarities to Jefferson’s character traits. The court trial scene embodies everything that is contained within the novel. All events that occur throughout the entire novel are a repercussion of Jefferson’s court case. These circumstances set up the tone that is simply perceived throughout the novel. Gaines tone in the novel shifts as the novel progresses. Gaines made the novel begin with a pessimism view; everything seemed awful and negative especially the court trial. Gaines shows us this disgust tone by telling us the details of the jury members. The twelve â€Å"white† jury members of the case shows us that Jefferson felt dominated by the whites. As the novel goes on Gaines tone shifts and Jefferson seems more aware and confident, the anger and disgust diminishes the longer Jefferson sits in jail. The twelve white jury members were also Gaines way of showing the dominance, and power of the whites during this ime, only thinking that blacks are only good for working, and is incapable of thinking for themselves†Ã¢â‚¬ ¦ Do you see a modicum of intelligence? A trait inherited from his ancestors in the deepest jungle of blackest Africa†¦ What you see here is a thing that acts on command. â€Å"(Gaines7). Understanding this time era is important for the tone, and Gaines gives good examples representing the era to the tone. Gaines’s style is unique because the figurative language that he uses improves the reader’s mental picture. For example, when Gaines was describing Miss Emma at the beginning of the novel he says â€Å"she became as immobile as a great stone or as one of our oak cypress stumps†(Gaines 36). This allowed me as the reader to picture Miss Emma and the condition that she is in with a mental image throughout the entire novel. He also used figurative language while he describes in chapter fourteen the Louisiana Countryside. Gaines told in great detail the cemetery appearance as Grant walked through and then explain the smells and feelings he has while Grant explores the Sugar Cane Planation with Vivian. The literary devices were greatly put to use by Gaines to explain, and portray his novel to any reader. He has made a novel enjoyable for an audience that may not like reading due to his sarcasm (tone), and figurative language to set up numerous scenes. The settings are a main building block for this novel because the court room and the jail cell is when the story line is put together. Each trial, and everyday described by Gaines about Jefferson in jail puts the novel together into one amazing novel that I will be sure to recommend. A Lesson Before Dying Essay The economic downturn of the past several years has been devastating to local economies and, by extension, their local law enforcement agencies. According to a report by the National Institute of Justice, the United States is currently experiencing the 10th economic decline since World War II (Wiseman 2011). The impact of this downturn will result in a change of how law enforcement services are delivered. As has been discussed by the COPS Office Director, Bernard Melekian, in a series of recent articles published in the Community Policing Dispatch, expectations will not be lowered just because an agency now has fewer officers, or because the budget is limited. Simply doing less while waiting for local budgets to recover to pre-2008 levels is not a viable option. Law enforcement leaders are faced with budget contractions that are in need to identified in different ways to deliver police services and, perhaps more importantly, articulate what the new public safety models will look like to their communities (Melekian 2011a). The effects of the economic downturn on law enforcement agencies may be felt for the next 5–10 years, or worse, permanently. These changes could be permanently driven not just by the economy, but by local government officials who determined that allocating 30–50 percent of their general fund budgets for public safety costs is no longer a fiscal possibility (Melekian 2011b). While it appears that the economy is beginning to recover on the national level, most economists agree that local jurisdictions are still in decline and will continue to be so, at least in the short term. Due to the decline of tax revenues because of Foreclosures County and municipal budgets tend lagging behind the general economy, which is one of the main source of funding for local agencies. Agencies are also faced with the budget realities, the current model for service delivery—which has been with us for the last 50 years—is already starting to change, and will be forced to continue to change dramatically and rapidly in the next 3–5 years. Police departments have been one of the affected by the current economic climate. Restricting revenues nationwide have forced local governments to make cuts in spending across the board, which has affected everything to include public safety operating budgets. However, while these budget cuts are threatening law enforcement jobs the responsibility to serve and protect remain. There has been no methodical way of measuring the effect the economic downturn has had on police agencies across our nation. A good example is how Nigeria has been experiencing difficulties in Budget implementation. The objective of the article was to present alternative forms of budgeting and after exposition on them, to recommend one that could mitigate budget implementation problem for Nigeria. Two types of budgeting addressed are incremental and zero-base. Under incremental budgeting, a certain percentage is added or subtracted from previous period’s figures to arrive at new period’s budget. Under zero bases, every program is reevaluated for its merits, as if previous budgets never existed. The starting points are the results hoped to achieve, and every debate about budget implementation is done prior to passage. Zero base budgeting is analogous to marketing concept in terms of information requirement and zeroing in on customized needs. To the extent that zero base budgeting plans, executes and controls, it serves as a management tool. Nigeria’s budgeting has been incremental, overly politicized and not carried out by experts, but merely based on benchmark price and quota of daily oil production. Factors militating against proper budgeting in Nigeria are distortions in fiscal transparency. Budget implementation in Nigeria is a critical problem. Many have blamed our poor socio-economic and infrastructural development on low degree of budget implementation, which is a result of incremental budgeting process. The paper therefore recommends zero based budgeting to Nigeria at all levels (GJSS, 2012). Sometimes inefficiencies result due to poor integration of the finance and strategy. â€Å"Budgeting and performance are typically overseen by the finance department, whereas planning s coordinated by strategy department. Often, the two processes aren’t well integrated, resulting in strategies that are often dictated by the budget process instead of vice versa† (Gary 2003). The reason for this could be that everyone involved may be attempting to accomplish the same goals, but also trying to make sure that the outcome will be beneficial to them, such as a substantial bonus or a reward. A budget cycle refers to the whole process from the commencement of developing a budget to the execution of the final charge on the budget. Since the majority of the budgets are prepared for a one year period, budget cycles cover the costs and expenditures for a period of one year. However, there are budget cycles that run for more than one year period. Government budgets have a budget cycle of at least 18 months from the conception of the various departments’ budgets to the time the appropriation bills are signed into law (Hyde, 2001). The initial steps of the budget cycle take place in the various departments and agencies. The program officers in the various departments compile all information that is necessary in the preparation of the budget. The budget cycle culminates with the president’s budget application to the Congress. This often takes place in February (USDOJ, 2011). A budget refers to a list of premeditated revenues and expenses. It represents a tool for savings and expenditure. A budget can also be defined as an organizational plan that is stated in monetary terms. It is used as a road map for conducting the activities, objectives, assumptions, and strategies of an organization. A budget cycle is comprised of various stages. Budget planning for the new fiscal year marks the first step of the budget cycle, while closing and carry forward activities mark the end of a budget cycle (Hyde, 2001). The steps outlined below are steps of a sample government’s budget cycle: Budget submissions: this entails the submission of the budget plans to the respective Budget Offers in various government departments. The budgets are reviewed and approved. Budget approval: this entails the executive committee approving the budget. The Initial Budget Authorizations are then submitted to the respective supervisors who address the respective cost items. Global Changes: the salaries are adjusted so that they reflect salary increases that are permitted by the Salary Subcommittee and the Human Resources Department. Closing: this entails the closure of the budgets at the end of the fiscal year. Carry forwards: it entails carrying forward all the unspent money to the following fiscal year. This marks the last step in the budget cycle. In most instances, law enforcement management prepares master budget for the coming year. The master budget includes the projected expenses and maintenance which is incorporated in the master budget and other smaller budgets such as training, overtime, marketing, administrative, and departmental budgets. By establishing an operating and financial budget for a future period, management can identify problems in advance. This can be maintained by forecasting for future predictions. A forecast is a reflection of the future. When forecasting is taken into account, two key aspects to consider are cash budgets and expenditure forecast. In most instances, budgets are and should be prepared for a future period such as an oncoming accounting or financial year. They are detailed by quarters or months. Typically, annual budgets are not altered once the year begins. However, budgets should not be rigid so as to prevent timely actions if need arises. Instead, budgets should only act as a guide rather than a restriction. However, there are rare circumstances when an annual budget should be revised such as due to a radical change in the business environment. Budgets are also important for obtaining funding since they portray an organization’s capacity to the lending institutions and financiers. Additionally, budgets are important management tools, they aid in setting milestones that need accountability to achieve, and aid an organization in identifying risks and establishing benchmarks. Thus, budgets facilitate the process of making adjustments to avoid risks, and to measure the benchmarks. Understanding the significance of budgeting marks the first step towards successful financial planning. It plays a significant role in the strategic planning process by an organization. It outlines the future financial goals and needs of an organization such as technological needs, overhead needs, financial requirements, and capital improvements. I have a very strong opinion that budgeting should not be scrapped, rather be modified to meet the current business environment. Organizations would have to restructure compensation programs so that managers no longer have an incentive to favors short-term goals over the longer-term. Budgeting will have to be flexible to be able to be adjusted from time to time to reflect changes in organizational goals and the economic environment. Again, accounting department should be responsible for compiling only budget information; they should not determine the budgeting process. Management, through the planning process should determine the budget, and all departments should be included in the process. Budgeting should be both top down and bottom up; i. e. upper level management and middle level management will both work to finalize a budget. We can streamline the budgeting process by developing a financial model. Financial models can facilitate â€Å"what if† analysis so we can assess decisions before they are made. This can dramatically improve the budgeting process. One of the biggest challenges within financial planning and budgeting is how do we make it value-added. Budgeting requires clear channels of communication, support from upper-level management, participation from various personnel, and predictive characteristics. Budgeting should not strive for accuracy, but should strive to support the decision making process. If we focus too much on accuracy, we will end-up with a budgeting process that incurs time and costs in excess of the benefits derived. The challenge is to make financial planning a value-added activity that helps the organization achieve its strategic goals and objectives. In order for department to compensate for dwindling budget, many law enforcement officer have had to learn how to focus on what can they can sacrifice from their normal lifestyle in order to offset the reduction in available spending. Some of these sacrifices have included families foregoing summer vacations, or shopping in discount stores instead of department stores they are accustomed too. However, today law enforcement agencies are faced with the difficult task of maintaining the same service that their communities expect despite the extreme reduction in available resources. And, in order for them to deliver the same high level of protection and emergency responsiveness that the communities depend on, law enforcement agencies must find new and inventive techniques to address those needs in cost-effective and maintainable way. Agencies must have a good understanding of how budgeting marks the first step towards successful financial planning. Budgeting has a significant role in the strategic planning process by any organization. It provides the framework for future financial goals and the needs of an organization such as technical equipment like laptops, radios, and side arms. It also shows the overhead needs, and departmental financial requirements. It can also outline the costs involved in order to get the resources that are required to meet their financial goals. Developing a budget is an important tool for determining the department’s performance, in motivating the upper-management, other members of staff, and measuring the results towards accomplishing the organization’s financial goal. References Gary, L (2003) Breaking the Budget Impasse. Pg 3, Retrieved September 30, 2013, Idio, U. S. (2012). THE BUDGET AS A MANAGEMENT TOOL: ZERO BASE BUDGETING, PANACEA TO BUDGET IMPLEMENTATION IN NIGERIA. Global Journal of Social Sciences, 11(1), 1-7. Retrieved from http://search. proquest. com/docview/1036581432? accountid=32521 http://www. cops. usdoj. gov/files/RIC/Publications/e101113406_Economic%20Impact. pdf Melekian, B. , (2011a). Director’s Message. Community Policing Dispatch vol. 4, no. 3. http://cops. usdoj. gov/html/dispatch/03-2011/DirectorMessage. asp. Melekian, B. , (2011b). Director’s Column: July 2011. Community Policing Dispatch vol. 4, no. 7. http://cops. usdoj. gov/html/dispatch/07-2011/DirectorMessage. asp. Wiseman, J. , (2011). Strategic Cutback Management: Law Enforcement Leadership for Lean Times. Research for Practice, Washington, D. C. : U. S. Department of Justice, National Institute of Justice, NCJ 232077.

Group Observation Paper - 1139 Words

Group Observation April 30, 2011 Suzette Williams Dr. Susan Kinsella I chose to observe a sex offenders group at office of an association of licensed professional counselors in Hinesville, Georgia. The group consisted of 9 sex offenders and the counselor, who was a woman, and myself. The group meet in the evening and everyone was present and on time. We sat in a circle, and I was introduced. I had to sign a confidentiality agreement, and the guys signed something stating they didn’t mind my being there. There were no introductions, as everyone knew each other. Group therapy is seen as the most appropriate form of treatment in the United States. The rationale for this is the argument that sex offenders require group therapy†¦show more content†¦The group displayed these characteristics and more. | Groups also have members who play certain social roles: * Encourager: Praises the ideas of others. * Harmonizer: Mediates differences between group members. * Compromiser: Moves group to another position that is favored by all group members. * Gatekeeper/expediter: Keeps communication channels open. * Standard Setter: Suggests standards or criteria for the group to achieve. * Group observer: Keeps records of group activities and uses this information to offer feedback to the group. * Follower: Goes along with the group and accepts the group s ideas (Roles in Groups, 1999). | | | In this group there were no disruptive members. I filled the role of an observer, I offered feedback at the end of the session. The counselor filled the role of standard setter. There was an encourager, a harmonizer, an expediter, and a follower. 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