The welfare state models

The welfare state models


Percijn van Haeringen, Mr. Van Erve, A4B, SOC


The idea of the welfare state could be a very simple idea supported by both the human intuition and the economic theory. The idea goes as the following: Considering that welfare benefits in countries are generous and give lots of money and the taxes is high this would directly mean fewer people would work, because working would be less valuable then. So many people would then think why work if I have to pay such a big amount of my wage to the government as taxes if I can also just get a check from the government just for doing nothing at all.

There are three different welfare state models: Scandinavian model, which exists in the Scandinavian countries like Sweden and Denmark. The Anglo-Saxon model is a capitalist model which exists in countries like America and the UK. The last one is the Rhineland model in which the company is a work community. Comparing these three different models, whch one is the best?

I think the Scandinavian model is the best one since it is a combination between a flexible labour market and a strong social security system. The Scandinavian model exists in countries like Sweden, Finland and Denmark. The flexible labour market gives easy dismissal of employees, but also makes sure you can get another job quite easily. This makes sure that only a very small part of the working group in the Scandinavian model countries is unemployed. The great social security system is recognized in for example the huge benefits employees can get and the ability for a parent to quit work when you get a child. Because this welfare system is so expensive, countries using this model need to have a heavy collective tax burden, which means people that work have to pay a lot of taxes which can even go up to more than 50% of what you earn. This system is so expensive because of the high costs in care and education. You can conclude this is the best model for people just by looking at the facts. The Scandinavian countries, like Sweden, Denmark etc. Belong to the richest countries to exist in the world. Just like the Netherlands does. This is the best proof that this model has been the most successful. Many times Dutch citizens complain about the high amount of taxes they have to pay, but they sometimes forget that because of that taxes our level of for example care and education is so high.