Economic Effects of Welfare - Essay Example

In welfare states, such procedures are applied by governments which help to improve lives of needy individuals. These might include unemployed; physically or mentally disable people, widows and orphans. It has been always important to see what effect these welfare activities leave on an economy. Design Different researchers have analyzed these effects differently by focusing on a specific area. The important aspects included in economic effects of welfare are as under: It helps in the alleviation of poverty by meeting individual’s needs.

Link between percentages of Gross Domestic Production (GDP) spent on welfare economic indicators. Impact of welfare policies on poverty. Capabilities of individuals can be improved and they can participate in economic success and growth. Structural factors and poverty Findings All four above mentioned aspects are discussed under here: Alleviate poverty by meeting needs: In a research by Severine and Shahani, . On analysis of economic indicators of both countries, it was found that indicators of United States were not performing well as compared with other countries.

It concluded that welfare lead to progress and development of economy. Welfare Policies and poverty: Kenworthy (1119-1139) conducted a research Do social-welfare policies reduce poverty? A cross-national assessment, to find whether there is any evidence of relationship between welfare policies and poverty by collecting data using quantitative technique. Kenworthy also investigated that how these variables operate in different countries. These welfare programs have positive impact on economic conditions of developing countries as they spend more for welfare.

Welfare enhances capabilities of individuals: A research by Sen (13-34) "The Perspective of Freedom" In Development as Freedom, found that while welfare system enhances capabilities of an individual, it also helps them to participate in success of society. Data was collected through questionnaires. Sen discussed that success shows a path for freedom and freedom leads to development of an individual as well as a society. It is concluded in Sen’s research that free society is more likely to experience economic and social stability and development Structural factors and poverty: In a research by Brady, “Structural Theory and Relative Poverty in Rich Western Democracies”, effect of welfare on five structural factors namely “manufacturing employment, agricultural employment, female labor force participation, the elderly population, and children in single mother families” were analyzed.

Data was gathered via longitudinal survey. The