Laissez-faire vs. Welfare State
A welfare state is a concept of government where the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. It is based on the principles of equality of opportunity, equitable distribution of wealth, and public responsibility for those unable to avail themselves of the minimal provisions for a good life. The general term may cover a variety of forms of economic and social organization.
There are two main interpretations of the idea of a welfare state:
- A model in which the state assumes primary responsibility for the welfare of its citizens. This responsibility in theory ought to be comprehensive, because all aspects of welfare are considered and universally applied to citizens as a “right”.
- Welfare state can also mean the creation of a “social safety net” of minimum standards of varying forms of welfare.
There is some confusion between a “welfare state” and a “welfare society,” and debate about how each term should be defined. In many countries, especially in the United States, some degree of welfare is not actually provided by the state, but directly to welfare recipients from a combination of independent volunteers, corporations (both non-profit charitable corporations as well as for-profit corporations), and government services. This phenomenon has been termed a “welfare society,” and the term “welfare system” has been used to describe the range of welfare state and welfare society mixes that are found. The welfare state involves a direct transfer of funds from the public sector to welfare recipients, but indirectly, the private sector is often contributing those funds via redistributionist taxation; the welfare state has been referred to as a type of “mixed economy”.
“Laissez Faire” is French for “leave alone” which means thatthe government leaves the people alone regarding all economic activities.It is the separation of economy and state.
There are two ways that a government typically is tempted to interfere with the economy.The first is through the initiation of force,and the second is through socialized industries.Neither of these activities are aligned with theproper role of government,and are both unacceptable.
“Laissez Faire Capitalism” is actually redundant, due to the nature of Capitalism.Therefore, simply “Capitalism” is sufficient to get the point acrossalthough historically it has been misrepresented as compatible with government economic interference.