ABSTRACT
This chapter shows what economic policies are conducive or necessary to the promotion of welfare and to distinguish them from those which can only be justified on other grounds. Government intervention in the economy is ubiquitous and is of major significance, even in countries that cannot be classed as welfare states. The avoidance of massive unemployment is clearly a welfare objective when people consider the misery, hardship and waste of human resources caused by prolonged unemployment. No one would suggest that a welfare state must choose between unemployment and inflation stated in the crude terms. Economic planning has not so far contributed much to the progress of the welfare state in Britain, although in theory it should form an authentic instrument of welfare policy. The new towns – or at least those not too far from a metropolitan city – have proved to be potent instruments of welfare.
