The following paper is a result of the course „The American Political System“ given
by Prof. Slomp at the Faculty of Management of the University of Nijmegen, where
the author studies as an exchange student at the moment.
In the introduction of the course the students had to think about the most important
differences between the political systems of the United States and the European
countries. Among other major points the class came to the result that especially the
different ways and extents of providing social security and welfare for their citizens
can be regarded as one of the most important differences between the American
and European systems.
Moreover the different models of welfare state p layed an important role in the
discussions between European and American exchange students in the last months
and a lot of mutual prejudices dealing with the different kinds of welfare capitalism
had to be cleared up. For this reason the author chose the topic of social security
and welfare in Europe and the States for this assignment.
Today systems of social security and welfare are part of every modern democracy
in the world and most of the people in the „western countries“ – including the US -
count on the social services and provisions given by the state. Over the last 120
years and especially since World War II social and welfare policy has become one
of the major cores of modern democracies, without most of them the political
systems could be regarded as much more instable today. Nevertheless the
differences between the single systems and their historical, economical and social
backrounds are still strong, especially between America and Europe.
Accordingly to the questions given above, in the following paper the author wants to
- give a brief and critical overview of the american system of social security and
welfare (Chapter 2),
- describe challenges and perspectives of the american system on the basis of
two state issues (Chapter 3),
- give a short comparison of the general character of the american and european
systems of social security on the basis of the course literature, the modell of
Esping-Andersen and statistical data (Chapter 4) [...]
Table of Contents
1. Introduction
2. Social Security and Welfare in the United States – a short and critical overview
3. Challenges and perspectives of the American system on the basis of two state issues
3.1 Utah: Consequences of the welfare reform 1996 – a university study
3.2 Oregon: Ballot on a universal health care system
4. Social Security and welfare in Europe and the United States – a short comparison
5. Conclusion: Globalisation and the limitation of states´ ability to determine economical and social policies – a coming challenge for the general type of welfare state
Objectives and Topics
This paper aims to analyze the fundamental differences between the social security and welfare systems of the United States and European nations, examining how these differences are rooted in distinct historical, social, and political contexts while addressing the challenges posed by global economic integration.
- Comparative analysis of American and European welfare state models.
- Evaluation of the 1996 U.S. welfare reform and its social impacts.
- Discussion of health insurance challenges in the United States, specifically through state-level examples.
- Application of the "three worlds of welfare capitalism" theory by Esping-Andersen.
- Assessment of globalization's impact on national social policy sovereignty.
Excerpt from the Book
2. Social Security and welfare in the United States – a short and critical overview
Compared to Europe social and welfare policy in the US has been started quite late: Not until 1935 Roosevelt introduced the first pension and welfare programs with the „Social Security Act“ within the scope of his New Deal-Policy. After World War II especially president Johnson extended Social security and Welfare with his „War on poverty“ in the 60s by introducing two systems providing health care for the elderly („Medicare“) and the poor („Medicaid“)1. Today the state spending for social security and welfare is about 16 percent of the federal budget (see Chapter 4).
The most important part of the welfare system of the US is the so-called „Social Security“, that provides economical support to people faced with unemployment, disability and especially old age. The system, in which employees have to participate is financed by employers and employees to 50 percent each2. In the 90s the social security taxes were with about 14 percent of the gross income much more lower than in Europe. On the other hand the level of benefits is only 40 percent of the former income3, so that many Americans must also buy private insurance, frequently with contributions from the companies for which they work. Many companies also have retirement plans by which they and their employees put aside money for their retirement pensions 4. When added to Social Security payments, pensions enable part of retired Americans to live comfortably, but also a lot of them have to work in a part-time-job after their retirement to pay for life and especially health care. At the end of the 20th century the American Social Security System is still well-financed but
„as the baby boomer generation retires, beginning about 2010, politicians will face an inevitable dilemma: lower benefits and generate the ire of retirees or raise taxes and generate the ire of taxpayers.“5
Summary of Chapters
1. Introduction: The author outlines the scope of the paper, stemming from a course on the American political system, and highlights the significance of social welfare differences between the U.S. and Europe.
2. Social Security and Welfare in the United States – a short and critical overview: This chapter provides a historical background of U.S. welfare programs and critically examines the current Social Security system and Public Assistance.
3. Challenges and perspectives of the American system on the basis of two state issues: This section investigates the tangible consequences of the 1996 welfare reform in Utah and explores the unsuccessful attempts to establish universal health care in Oregon.
4. Social Security and welfare in Europe and the United States – a short comparison: The author compares the two regions using Esping-Andersen’s model of welfare capitalism and statistical data regarding state expenditure and poverty.
5. Conclusion: Globalisation and the limitation of states´ ability to determine economical and social policies – a coming challenge for the general type of welfare state: The final chapter shifts to an external perspective, arguing that globalization limits the policy-making autonomy of modern states and forces both systems to confront similar future challenges.
Keywords
Social Security, Welfare State, United States, Europe, Globalization, Public Assistance, Medicare, Medicaid, Esping-Andersen, Social Policy, Poverty Rate, Health Insurance, Welfare Capitalism, Equality, Freedom.
Frequently Asked Questions
What is the primary focus of this paper?
The paper examines and compares the structures, historical development, and current challenges of social security and welfare systems in the United States and Europe.
What are the central thematic fields discussed?
The work centers on the tension between freedom and equality, the evolution of welfare models, the impact of the 1996 U.S. welfare reforms, and the influence of economic globalization on social policy.
What is the main objective or research question?
The objective is to understand why American and European systems differ in their provision of social security and to assess how global market forces are narrowing the differences between these welfare states.
Which scientific methodology is utilized?
The author employs a comparative research method, utilizing existing course literature, political theories like Esping-Andersen's "three worlds of welfare capitalism," and statistical data on state spending and poverty rates.
What topics are covered in the main body?
The main body covers the historical development of U.S. social programs, specific case studies from Utah and Oregon, a theoretical comparison with European models, and an analysis of globalization's effect on state policy.
Which keywords characterize the work?
The work is characterized by terms such as social security, welfare capitalism, globalization, universal health care, and the dichotomy of equality and freedom.
How did the welfare reform of 1996 specifically impact families in Utah?
The study cited in the text indicates that while the reform reduced the number of welfare recipients, it pushed many into the "working poor" category without successfully ending their poverty, often leaving them without sufficient support when facing economic crises.
Why did the "Measure 23" ballot in Oregon fail?
It failed because voters rejected the proposal due to concerns over high tax increases (11.5% payroll tax) and arguments from opponents that it would cause an exodus of investment and turn the state into a haven for the "sick and dependent."
- Quote paper
- Christian Schäfer (Author), 2002, Structures and challenges of Social Security and Welfare in Europe and the United States - a comparative essay, Munich, GRIN Verlag, https://www.grin.com/document/21356
