Welfare State

A welfare state is a concept of government in which 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. The sociologist T.H. Marshall identified the welfare state as a distinctive combination of democracy, welfare, and capitalism. Scholars have paid special attention to the historic paths by which Germany, Britain and other countries developed their welfare state.

Modern welfare states include the Nordic countries, such as Iceland, Sweden, Norway, Denmark, and Finland which employ a system known as the Nordic model. The welfare state involves a transfer of funds from the state, to the services provided (i.e. healthcare, education) as well as directly to individuals ("benefits").

The welfare state is funded through redistributionist taxation and is often referred to as a type of "mixed economy". Such taxation usually includes a larger income tax for people with higher incomes, called a progressive tax. This helps to reduce the income gap between the rich and poor.

The activities of present-day welfare states extend to the provision of both cash welfare benefits (such as old-age pensions or unemployment benefits) and in-kind welfare services (such as health or childcare services). Through these provisions, welfare states can affect the distribution of wellbeing and personal autonomy among their citizens, as well as influencing how their citizens consume and how they spend their time.

By 2013 the U.S. remains the only major industrial state without a uniform national sickness program. American spending on health care (as percent of GDP) is the highest in the world, but it is a complex mix of federal, state, philanthropic, employer and individual funding. The US spent 16% of its GDP on health care in 2008, compared to 11% in France in second place.

14. Skim the text to answer the questions.

1. What is a welfare state?

2. Give some examples of modern welfare states.

3. How do they basically fund the welfare state?

4. What benefits does the welfare state give to its citizens?

5. What makes the USA stand out among the modern welfare states?

6. Find and share with your group mates some information about ObamaCare also known as the Affordable Care Act.

15. Find in the text the antonyms for the following words:

Ill-being
Rich
Produce
Minor
Easy
Disease
Collective