ABSTRACT
Non-political factors like demography or economic growth are more important than the actual effects of Social Democracy using public powers and the related performance in terms of welfare and well-being. This chapter describes the changing relationship between state and society at the turn of the penultimate century in view of the growing interventions by the state. It discusses the concept of the 'welfare state' – sometimes also labelled as the 'Caring State' as a major aim of most post-war Social Democratic parties. The chapter examines the relationship between economic growth and public expenditures that defines the potential use of state powers. The Dual Welfare State captures the dilemmas of any Social Democratic party if and when in a position to use state powers to further its policy-based goals. The chapter also analyses the relations between project and model in terms of adopted policy preferences within Social Democracy.
