chapter  2
15 Pages

The theoretical basis for the state funding of services

Despite the fact that the market allocates most goods, services and incomes in modern societies, governments have continued to raise large sums in taxes to sustain social welfare spending. Most coun­ tries spend between a fifth and a third of their national income on tax or contribution-based social welfare and some spend rather more. (See Chapter 7 for the comparative figures.) How are we to explain this persistent scale of state spending on welfare?