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Economic Effects of Welfare - Essay Example

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In a research by Severine and Shahani, An Introduction to the Human Development and Capability Approach: Freedom and Agency, it is found that welfare helps individuals to meet their needs and alleviate poverty. Data was collected through a survey. Findings revealed that economic well-being of individuals helped economic growth and macroeconomic stability. This research concluded that welfare of individuals support them to do what they can and expand their capabilities. Goodin in his study, The Real Worlds of Welfare Capitalism, analyzed percentage of GDP spent on welfare programs and economic indicators. Data were collected through annual statistics records. The study analyzed whether low expenditure on welfare leads to better performance of economy or not.  The results showed that United States was spending less that 21% of GDP on welfare programs while others were spending more. 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. 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. 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. ...Show more
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Summary

The main purpose of the essay was to appraise the proceedings as to how nations utilize their economy on welfare development.Social and economic soundness is desirable by each and every individual in any society. Welfare provided by government helps individuals to meet their basic necessities of life…
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