The Global Economy and the American Welfare State

The American social welfare state is approaching a crisis because of the global economy. Survival in a new world economy requires corporations to become more efficient, a strategy which leads to a rapidly changing technology, plant shutdowns, and industrial reorganization. To aid corporations, government often curbs taxes to make capital available for investment. These policies can lead to governmental debt, reduced welfare services, a deterioration in the infrastructure, and myriad social problems. This article investigates the effects of the global economy on the American welfare state