the political economy of redistribution Flashcards
what is the welfare state?
the role states play in protecting the economic and social well-being of all citizens through redistributive taxing and spending programs
what is progressive taxation?
when individual’s income go up as their incomes go up.
how to measure the size of a welfare state?
through welfare spending and the amount and types of programs offered to the public
what is progressive redistribution?
taking from the rich and giving to poor.
what is regressive taxation?
taxes that benefit wealthy people than poor
what is democracy and redistribution?
tension between democracy and capitalism
democracy tends to promote power equally through universal suffrage
capitalism tends to create economic inequality.
why do some wealthy democracies engage in more economic redistribution than others?
- labor unions - economic interest groups
the larger and more organized the labor the more likely we are to see generous welfare states policies
- the left right economic divide
The salience of political identity in many societies complicates the task of politicians who want to focus on questions of taxing and spending
To the extent that identity‐based conflicts dominate politics in a country, we tend to see less government redistribution
what is the impact of political institutions?
Countries with multiparty political systems tend to tax and spend relatively more than do countries with two‐party systems
Federalism also seems to be associated with smaller government, while unitarism is associated with bigger government
what is the impact of state strength?
Weak states confront considerable tax evasion and are therefore unable to redistribute wealth, as opposed to strong states with substantial bureaucratic capacities
Not all strong states engage in considerable redistribution; state strength merely makes redistribution possible
what is the role of globalization?
Globalization has the biggest effect in countries most exposed to the world market: smaller countries, such as Sweden
In larger countries such as the United States, the hypothesized effect of globalization on government redistribution and insurance provision is more limited
