Liberalism and the Welfare State Liberalism and the Welfare State Economists and Arguments for the Welfare State Edited by Roger E Backhouse Bradley W Bateman Tamotsu Nishizawa Dieter Plehwe 3 Oxford University Press is a department of the University of Oxford It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide Oxford is a registered trade mark of Oxford University Press in the UK and certain other countries Published in the United States of America by Oxford University Press 198 Madison Avenue, New York, NY 10016, United States of America © Oxford University Press 2017 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, by license, or under terms agreed with the appropriate reproduction rights organization Inquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above You must not circulate this work in any other form and you must impose this same condition on any acquirer CIP data is on file at the Library of Congress ISBN 978–0–19–067668–1 9 8 7 6 5 4 3 2 1 Printed by Sheridan Books, Inc., United States of America CONTENTS Introductionâ•… PART I ╇Varieties of Liberalism and the Early Welfare State: United Kingdom, Germany, and Japan Liberalism and the Welfare State in Britain, 1890–╉1945â•… 25 Roger E Backhouse, Bradley W Bateman, and Tamotsu Nishizawa Liberal Economists and the British Welfare State: From Beveridge to the New Rightâ•… 39 George Peden Ordoliberalism, the Social-╉Market Economy, and Keynesianism in Germany, 1945–╉1974â•… 57 Harald Hagemann From New Liberalism to Neoliberalism: Japanese Economists and the Welfare State before the 1980sâ•… 75 Tamotsu Nishizawa and Yukihiro Ikeda PART II ╇Neoliberalism and the Changing Understanding of the Welfare State Between Business and Academia in Postwar Britain: Three Advocates of Neoliberalism at the Heart of the British Business Communityâ•… 101 Neil Rollings Neoliberalism, New Labour, and the Welfare State 118 Matt Beech The Initiative for a New Social-Market Economy and the Transformation of the German Welfare Regime after Unification 131 Daniel Kinderman Neoliberalism and Market-Disciplining Policy in the Koizumi Reform in Japan 152 Juro Teranishi PART III Varieties of Neoliberalism: International Dimensions National versus Supranational Collective Goods: The Evolution of Neoliberal Federalism 171 Fabio Masini 10 Neoliberal Think Tanks and the Crisis 192 Dieter Plehwe Conclusion 212 Notes 219 Index 229 vi | Contents Liberalism and the Welfare State Introduction I.1. Economic Arguments and the Cases for and against the Welfare State The welfare state has not fared well in capitalist countries since the financial crisis of 2008, coming increasingly under attack (A timeline showing some of the main events related to the welfare state in the three countries studied here is provided in an Appendix to this chapter It is selective but serves to give an idea of the timing of changes.) While capitalism and democracy expanded in tandem for several decades, social citizenship and equality have now been relegated to the bottom on the list of agenda items in most democracies Following the financial crisis of 2008 and the use of government funding to bail out much of the financial sector, the need for austerity has been used as a justification for reducing the level of welfare provision When combined with the doctrine that tax burdens on business must be reduced to stimulate growth, this has served to further increase inequality1 and to undermine many of the ideas on which postwar European welfare states rested, generous welfare states being important for taming both inequality and poverty (Brady 2009) Inequality has also increased in developing countries Although many developing countries have succeeded in fighting poverty in terms of reducing the absolute number of poor according to standard definitions, this has not served to reduce inequality Global poverty may have fallen, but this is mainly an effect of the rapid development of the Chinese economy (Ross 2013), which continues to be governed by a one-party Communist regime with its own peculiar needs of legitimacy, including the fight against poverty Generalized notions of global competition, fiscal restraint, and the need to reduce public debt have been construed to legitimize austerity regimes in Europe (and the United States), undermine established welfare regimes in poor peripheral countries, and modify or at least preempt the expansion of welfare regimes in rich countries (Pierson 2001b; Taylor-Gooby 2005; Orenstein 2008; Blyth 2013; Schäfer and Streeck 2013) Moore, G.E., 31–34 Morgan, Edward Victor, 110 Morgenstern, Oskar, 78 Mori Taikichiro, 82 Morris, William, 77 Mudge, Stephanie, 146 Müller-Armack, Alfred, 10, 59, 64–66, 213 Müntefering, Franz, 141 Musgrave, Richard A., 182, 184–85, 187 Mussolini, Benito, 178 Must Britain Travel the Moscow Road? (Angell), 82 “My Early Beliefs” (Keynes), 31–32 Myrdal, Gunnar, 4, 78, 92 Nakayama Ichiro: equilibrium theory and, 85; Fukuda and, 94; Hayek and, 91, 94; Japanese Economic Research Institute and, 83; Keynesianism and, 80; on labor disputes, 78; neoliberalism and, 10; Yamada and, 79; Yamamoto and, 94 Nakayama Sohei, 82 Naniwada Haruo, 89 Nation, Staat und Wirtshaft (Mises), 174 National Bureau of Economic Research (NBER), 90–91 National Economic Development Council (United Kingdom), 122 National Health Insurance Acts (Japan, 1938 and 1958), 15–16 National Health Service (NHS; United Kingdom): austerity proposals regarding, 215; Beveridge’s vision for, 47; Buchanan’s critique of, 47; establishment of, 16; Hayek on, 45; Institute of Economic Affairs’s critique of, 47; Jewkes’s critique of, 47, 108; neoliberal critiques of, 41; New Right’s critiques of, 52; privatization of aspects of, 52, 122; redistributional aspects of, 9; risk minimization principle and, 46; Shenfield’s critique of, 107–8; unexpected expansions of, 47; 242 | Index universalist principles of, 5–6, 108, 213 National Health Service Act (United Kingdom, 1951), 16 National Insurance Act (United Kingdom, 1948), 16–17, 46 National Insurance (Industrial Injuries) Act (United Kingdom, 1965), 17 National Minimum Wage Act (United Kingdom, 1998), 19 National Universal Pension Act (Japan, 1959), 16 neoliberalism: austerity and, 5, 14, 194; federalism and, 13, 171–73, 176–77, 185, 187; freedom of contract and, 216; free trade and, 13–14, 123, 125, 171–72, 196; in Germany, 12, 131–32, 142–44, 214–15; Global Financial Crisis (2008–9) and, 13, 192–96, 198–204, 206, 208–9; globalization and, 194; individual freedoms emphasized in, 112, 119, 123, 125, 164, 173, 216; in Japan, 10–12, 75–77, 79, 81–85, 87, 89–95, 152–66; Keynesianism critiqued in, 51, 101–2, 105–6, 120; Mont Pelerin Society and, 4–5, 39– 40, 101–5, 112, 173, 193–97, 203; “New Right” (United Kingdom) and, 9, 39–40, 51, 121; private property and, 112, 216; as response to crisis of Fordism, 193; as response to Great Depression, 186; social democratic state critiqued by, 119; social-market economy and, 65; state economic intervention critiqued by, 173; supranational economic governance and, 171, 186; in the United Kingdom, 9, 11, 39– 40, 72, 101–14, 118–28, 164, 215; in the United States, 72, 121, 153, 164, 197; welfare state policies critiqued in, 4–5, 9, 13, 40, 49, 102– 4, 107–12, 119, 121, 123, 126–27, 187, 194, 201, 212–13, 215–16 The Neo-liberal State (Plant), 119 Neue Wirtschaftslehre (New Economics, Paulsen), 68 New Deal, 207 New Employees’ Pension Insurance Act (1954), 16 New Labour See under Labour Party (United Kingdom) New Liberalism: British Liberal Party debates regarding, 25–27, 29; developmental capitalism and, 11; Fabianism and, 126; Hobson and, 27, 30, 35, 79, 125; in Japan, 10–11, 75–77, 79–85, 87, 89, 91, 93; Labour Party and, 126; origins of, 25–26; on state intervention versus free markets, 42, 125–26, 128; welfare state policies and, 9, 25–26, 29–30, 36, 42, 126–28, 173 New Liberalism (Ueda), 80 New Public Assistance Act (Japan, 1950), 16 New Right (United Kingdom): education policy and, 52; employment policy and, 51; housing policy and, 52; Institute of Economic Affairs (IEA) and, 39; National Health Services critiqued by, 52; neoliberalism and, 9, 39–40, 51, 121; Thatcher and, 40, 121; welfare state policies and, 39, 41, 51–52 New Social Market Initiative See Initiative Neue Soziale Marktwirtschaft (INSM) New Zealand, 140 Nihon Boekikai (Japan Society for Trade), 83 Nishiyama Chiaki: biographical background of, 90; Friedman and, 90–91; Hayek and, 76, 79, 90–94; Japanese Economic Research Institute and, 84; Mandeville and, 90; on monetary policy, 90–92; Mont Pelerin Society and, 11, 79, 84; neoliberalism and, 11, 90–94 Noguchi Yukio, 12, 153–54, 160–61, 165 Norberg, Johan, 204 “Notes on the Effects of Economic Ideas on Policy” (Hutchison), 64 Not Unanimous (Seldon), 105–6 Obama, Barack, 2, 202 O’Driscoll, Gerald P., 203 Ohara Soichiro, 83 Ohira Masayoshi, 89 Olson, Mancur, 185 Omissions of Government (Shenfield), 105 On Liberty (Mill), 27 Oppenheimer, Franz, 58, 65 Ordeal by Planning (Jewkes), 108 ORDO (journal), 63, 78, 89 ordoliberalism: conformity principle and, 62; constancy of economic policy and, 61; deregulation and, 14; Eucken and, 58–63, 65–66, 89, 201; freedom of contract and, 61; “Freiburg school” and, 10, 58–59, 63, 65; German business interests’ support for, 132; Global Financial Crisis and, 198, 200, 207–8; Hayek and, 60–61, 135–36; Japan and, 83, 85, 89; liability principle and, 61; monetary stability and, 10, 60, 62–63, 214; neoliberalism and, 39; open markets and, 60, 214; “perfect” economic competition and, 60, 63; private property and, 60–61; regulating principles and, 61–62; as response to Nazism, 58; Schiller and, 70; socialism opposed under, 60–61; social-market economy and, 10, 65, 134–35, 216; Sozialstaatsprinzip (obligation of state to form social order) and, 61; Stockholm network and, 207; subsidiarity principle and, 62; taxation and, 62; in West Germany, 9–10, 66, 216 Organic Law (Japan, 2003), 19 Ortsbestimmung der Gegenwart (Rüstow), 66 Ostrom, Elinor, 183, 185 Index | 243 Ostrom, Vincent, 183–84, 186 Ouchi Hyoe, 76 Paish, Frank, 50, 53 Palmer, Tom G., 203 Paqué, Karl-Heinz, 137, 144–45 Pareto optimality, 35 Partridge, John, 111 Part-time Workers Act (Japan, 1993), 18 Paulsen, Andreas, 68 Peacock, Alan T.: Buchanan and, 41; Hayek and, 45; housing policy and, 49; on inflation and fiscal policy, 49; Liberal Party and, 41, 48–49; on national insurance systems, 46; neoliberalism and, 9; New Right and, 52; public choice theory and, 41; school voucher and school competition recommendations of, 48, 53; welfare state policies and, 40–41, 45, 52–53; on welfare state privatization, 41 Peffekoven, Rolf, 137 Pellengahr, Hubertus, 142, 144–45 Pension Act (Japan), 16, 19 pensions: Beveridge on, 42; earnings-related contributions and, 17; Erhard on, 214; flat-rate varieties of, 42; in Germany, 15, 19, 145; inflation and, 46; in Japan, 16, 18–19, 77–78, 159, 163; means- testing and, 46; privatization of, 5; reform proposals regarding, 2, 5, 67; in the United Kingdom, 15–17, 19, 26, 31, 41–42, 45–46, 108, 126; in West Germany, 16, 67, 137, 214 Peters, James, 114 Pforzheim collective bargaining agreement (Germany), 141 Phillips curve, 57, 71 Physically Handicapped People’s Welfare Act (Japan, 1949), 16 Pickett, Kate, 4 Pierson, Paul, 6 Pigou, A.C See also specific works: on business cycles, 30–31; on economic welfare and total welfare, 33; Japanese economists 244 | Index and, 83; marginal analysis and, 33; utilitarianism and, 32–36; welfare state policies and, 28–29 Pinera, José, 5 Plant, Raymond, 119, 127 Polanyi, Michael, 184 Policy Exchange (British think tank), 207 “policy trilemma,” 196 The Political Economy of Hayek (Koga), 92 The Political Order of a Free Society (Shenfield), 105 The Political Power of Economic Ideas (Hall et al.), 67 Polleit, Torsten, 206 polycentrism, 183–84 Poor Law (United Kingdom), 42, 87 Powell, Enoch, 50, 120 price controls, 43–44 Prices and Production (Hayek), 91 Principia Ethica (Moore), 31–32 Principles of Economic Policy (Eucken), 60, 63 private property, 29, 60–61, 112, 174 privatization: of bailed-out banks, 193; in Germany, 18; Global Financial Crisis and, 13; in health care, 6, 18, 52, 122; of higher education, 82; in Japan, 157–59; neoliberalism’s promotion of, 196; of pensions, 5; in Sweden, 6, 8; in the United Kingdom, 121–22; Volkswagen and, 67; of welfare state functions, 2–3, 6, 8, 40 “Professor Röpke and the LDP” (Yamamoto), 88 Progress and Policy Network (British think tank), 123 Prollius, Michael, 206–7 Prussia, 14 Ptak, Ralf, 134–36 Public Assistance Act (Japan, 1946), 15 public choice theory, 41, 140, 182, 184, 186 public goods See collective goods public sector borrowing requirement (United Kingdom), 49 Pure Theory of Capital (Hayek), 91 Rabushka, Alvin, 5 Raffelhüschen, Bernd, 137 Rappard, William E., 179 Rath, Dieter, 143 Reagan, Ronald: Cold War and, 202; German admirers of, 137, 140; neoliberalism and, 72, 121, 153, 164; taxation and, 140; welfare state reforms and, 12, 137, 140 Reform (British think tank), 207 Reform of Income Tax and Social Security Arrangements (Liberal Party, United Kingdom), 46 regulating principles (Eucken), 61–62 Rentenreformgesetz (Pension Reform Law, West Germany), 67 Report of the Radcliffe Committee on the Working of the Monetary System (United Kingdom, 1960), 106 The Return to Economic Planning in Britain (Shenfield), 105 Rhein, Axel, 142 Rhine capitalism See social-market economy Rhys Williams, Juliet, 46 Riker, William H., 184 The Road to Serfdom (Hayek), 4, 43–44, 51, 61, 175 Robbins, Lionel C.: Autobiography of, 179; Beveridge Report and, 41–42; Britain’s national university system administration and, 48, 53; collective goods and, 185; constitutional federalism and, 181; countercyclical economic stimulus and, 198; Eiunadi and, 178–79; employment policy and, 44, 50, 53; European federation proposal and, 175; federalism and, 13, 176, 179–81, 186–87; Federal Union organization and, 180; Great Depression and, 207; Hamilton and, 179; Hayek and, 45; on inflation, 49–50; London School of Economics and, 44; monetary policy and, 31; Mont Pelerin Society and, 44, 179, 181; national sovereignty model critiqued by, 177, 180; neoliberalism as guiding philosophy of, 48, 198, 213; utilitarianism and, 34–36; welfare state policies and, 9, 29, 35, 44–45, 216 Robertson, Dennis, 50 Robertson, John Mackinnon, 29 Robinson, Joan, 43 Rodenstock, Randolf, 135–38, 142 Rogowski, Michael, 141 Rolls-Royce, 51 Roosevelt, Franklin D., 164, 207 Röpke, Wilhelm: Beveridge Report critiqued by, 85; conformity principle and, 62; exchange rate policies and, 196; Japanese economists and, 78–79, 83, 85, 88–89, 92; Keynesianism opposed by, 68; Mont Pelerin Society and, 195; social- market economy and, 65; Vitalpolitik and, 65–66 Rossi, Ernesto, 179 Rothbard, Murray, 207 Rowntree, Seebohm, 77 Royal Commission on the Taxation of Profits and Income, 46 Ruskin, John, 34, 36, 77–78 Russell, Bertrand, 77 Russian Revolution, 186 Rüstow, Alexander, 65–66 Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung (SVR; German Council of Economic Advisers), 69–72 Sakurada Takeshi, 82, 94 Salin, Pascal, 207 Sally, Razeen, 5, 174 Saloma III, John, 194 Samuelson, Paul, 67–68, 182–83 Index | 245 Sapir, Andre, 2 Say’s law, 72 Schäffler, Frank, 206 Schäuble, Wolfgang, 138 Schiller, Karl: government positions of, 59, 69–70; Keynesianism and, 69–70, 137, 214; Mont Pelerin Society and, 137; Social Democratic Party and, 71; Stability and Growth Act and, 10 Schmelzer, Matthias, 196 Schmidt, Helmut, 70–71, 137 Schmoller, Gustav von, 65 Schneider, Erich, 10, 68 Scholz, Olaf, 138 school vouchers, 48, 52–53 Schröder, Gerhard, 134, 137–40, 143 Schuldenbremse, 144 Schumpeter, Joseph, 68, 79, 173, 201, 207 Schwartz, Anna, 90–91, 198–99 Seeleib-Kaiser, Martin, 3 Seiyukai Party (Japan), 156–57, 159–60 Seldon, Arthur, 39, 104, 107–8, 119 Semler, Johannes, 58 Sensory Order (Hayek), 93 Shaw, George Bernard, 26 Shenfield, Arthur Asher See also specific works: Beveridge critiqued by, 109; biographical background of, 102–4; Confederation of British Industry and, 102, 106–7; on education policy, 108; on employment policy, 106; Federation of British Industry and, 104–6; Industrial Policy Group (IPG) and, 103, 106–7; on inflation, 105; Keynesianism critiqued by, 105– 6; Liberal Party and, 104; Mont Pelerin Society and, 104–5, 113; National Health Service critiqued by, 107–8; neoliberalism as guiding philosophy of, 11, 102, 104, 107; on pensions, 108; on taxation, 105, 107, 112; welfare state model critiqued by, 107, 112, 114 Shinohara Miyohei, 83 246 | Index Shokokaigisho (Japanese Chamber of Commerce and Industry), 83 Showa Crisis (Japan, 1927), 155 Shultz, George, 196 Sidgwick, Henry, 28, 179 Small and Big Business (Shenfield), 105 Smith, Adam, 34, 60 Smith, Llewellyn, 26 Smith, Vernon, 195 Smithsonian Agreement (1971), 71 The Social Crisis of the Present (Röpke), 62 social democracy, 12, 76, 123, 128, 164 Social Democratic Party (SPD; Germany and West Germany): coalition government (1966–69) and, 59, 69–70; coalition government (1969–74) and, 69–70; coalition government (2005) and, 142; election (2005) and, 140; elections (2013) and, 144; electoral losses (1953 and 1957) by, 69; employment policy and, 10; growing electoral strength during 1970s of, 71; Keynesianism and, 68–70; Marxism and, 68–69, 71, 76; pension reform and, 67; welfare state policies and, 12, 133–34, 137–39, 142, 144, 215 Social Insurance and Allied Services (Beveridge) See Beveridge Report socialism See also Marxism: Great Depression and, 30; Labour Party (United Kingdom), 25, 28, 76, 122; Mises’s critiques of, 30, 61; ordoliberalism’s critique of, 60–61; Ueda’s critiques of, 81–82; Yamamoto’s criticism of, 85–86, 88 “Socialism and the Duty-Role of Managers” (Ueda), 81 Socialist Party (Japan), 76, 86 social-market economy model (Germany and West Germany): business-cycle policy measures and, 64–65; Erhard and, 57, 87–88, 135–36, 143; free markets and, 66, 88; Hayek and, 65; Hutchison on, 64; Initiative Neue Soziale Marktwirtschaft on, 142–43, 146; Müller-Armack and, 64–65; ordoliberalism and, 10, 65, 134–35; reform proposals regarding, 133–35; as response to Great Depression, 58; state’s role in promoting competition in, 88; structural crises during 1990s of, 133 Social Reconstruction and Enterprise (Ueda), 80 Social Security Act (United Kingdom), 17–19, 51–52 “The Social Significance of the New Middle Classes” (Ueda), 81 Sonderstelle Geld und Kredit (Special Bureau for Money and Credit), 58 Soviet Communism: A New Civilization? (Webb and Webb), 30 Soviet Union, 29, 181 Sozialstaatsprinzip (obligation of state to form social order), 61 Spinelli, Altiero, 179 Stability and Growth Act (West Germany, 1967), 10, 69–70 Stamp, Josiah, 29 Starbatty, Joachim, 140 State Pension Credit Act (United Kingdom, 2002), 19 Stigler, George, 106, 195 Stockholm network of think tanks, 14, 204–8 Straubhaar, Thomas, 137, 208 Strauß, Franz-Josef, 71 Streeck, Wolfgang, 132 Studies in Labour Problems (Kawai), 83 Stumpfe, Werner, 134 subsidiarity principle, 62 Suga Takashi, 89 Sutcliffe-Braithwaite, Florence, 40 Sweden, 2, 5–6, 8, 58, 140 Switzerland, 87 Takahashi Korekiyo, 159 Taro Asou, 160 Tawney, R. H., 25–26, 29–30, 81 taxation: collective goods and, 185; in Germany, 140; Hayek on, 45; higher education sponsored through, 48; in Japan, 157–58; Mill on, 65; negative income taxes and, 46; ordoliberalism and, 62; private investment affected by, 43; progressive forms of, 26, 62; Tobin tax and, 193; in United Kingdom, 14, 19, 43, 46, 48, 105, 107–12, 122, 124, 128; in the United States, 140 Tax Credits Act (United Kingdom, 2002), 19 Temporary Measures Law for Special Industries (Japan, 1962), 162 Thatcher, Margaret: Centre for Policy Studies and, 51; Confederation of British Industry and, 102, 112; election (1983) and, 121; election (1987) and, 121; election (1979) of, 101–2; on free trade, 120; German admirers of, 137, 139–40; Institute of Directors and, 102, 112; Joseph and, 120–21; Keynesianism opposed by, 101; liberal individualism and, 6; monetary policy and, 121; neoliberalism and, 40, 72, 101, 112, 121–22, 124, 128, 153, 164; “New Right” and, 40, 121; self-help emphasized by, 40, 87; on states’ promotion of free markets, 88; welfare state reforms under, 9, 12, 137, 139–40, 215 The Theory of Employment (Pigou), 31 “The Theory of Self-Love” (Nishiyama), 90 think tanks: Centre for Policy Studies (CPS) and, 51, 120; in Germany, 206–8; Global Financial Crisis and, 192–95, 197–209; Institute of Economic Affairs (IEA) and, 39–40, 46–49, 51–52, 101–5, 107–9, 112–13, 119–20; Institute of World Economics (Kiel) and, 68, 70, 138; Institute of World Economy (Japan) and, 84, 92; Japan Index | 247 think tanks (cont.) Economic Research Institute (JERI) and, 83–84; Mont Pelerin Society and, 4–5, 11, 13–14, 39–40, 44, 63, 76, 79, 82–84, 101–5, 108–9, 112–13, 131, 135, 137–38, 146, 173, 179, 181, 193–204, 207–8, 216; neoliberalism promoted at, 9, 13–14, 194–95, 204–9, 215; New Right and, 39; Progress and Policy Network and, 123; Stockholm network and, 14, 195, 204–8 Thorneycroft, Peter, 49–50, 120 Tiebout, Charles, 182–87 Tietmeyer, Hans: Anglo-American economic model supported by, 136; INSM leadership by, 136–37, 143–44; on market reforms and interest groups, 139, 141 Titmuss, Richard, 107–8 Tobin tax, 193 Tofall, Norbert, 206 Torrens, Robert, 179 Toynbee, Arnold, 81, 180 Toyo Keizai Shinpo, 79 Trade Union Legislation (Shenfield), 105 trade unions: in Germany, 12, 133–34, 136, 141–42, 144–45; Global Financial Crisis and, 193, 202; in Japan, 10, 15, 162; Keynesianism and, 68; in Latin America, 165; monopoly power and, 50; in the United Kingdom, 120–21; in West Germany, 10, 67–70, 72 Triffin policy trilemma, 196 Tsuru Shigeto, 10, 78–79 Tullock, Gordon, 41, 184, 186 Turner, Rachel, 101, 112 Ueda Teijiro See also specific works: British welfare state’s influence on, 77; on corporations and social reform, 80; free trade and, 80–81; on Keynes, 82; on the managerial class, 81–82, 93; nationalization opposed by, 82; 248 | Index New Liberalism and, 75–76, 80, 82; Oizumi and, 89; socialism critiqued by, 81–82 “The Underdevelopment of Keynesianism in the Federal Republic of Germany” (Allen), 67 Unemployment Assistance Board (United Kingdom), 42 unemployment insurance: Beveridge Report and, 42, 46–47; in Germany, 15, 19, 133, 215; in Japan, 16–17, 77–78; means testing and, 42, 127; reform proposals regarding, 2; in the United Kingdom, 19, 26, 29, 31, 42, 127 Unemployment Insurance Act (Japan, 1947), 16 The Unfinished Revolution (Gould), 124 Unionised Australia (Shenfield), 105 United Kingdom: compulsory public education introduced in, 14; family allowances in, 42; gold standard suspended (1931) by, 156; Great Depression in, 30; housing policy and, 49, 52; Japan and, 155, 157, 160; liberal market economy in, 8, 214; minimum wages and, 19, 29; monetary policy in, 121; National Health Service in, 5–6, 9, 16, 41, 45–47, 52, 107–8, 122, 213, 215; neoliberalism in, 9, 11, 39–40, 72, 101–14, 118–28, 164, 215; pensions in, 15–17, 19, 26, 31, 41–42, 45–46, 108, 126; public education and education policy in, 15, 17, 19, 47–48, 52, 108; public expenditure levels in, 49–50, 125; Social Security Act in, 17– 18, 51; taxation in, 14, 19, 43, 46, 48, 105, 107–12, 122, 124, 128; think tank networks in, 194, 206–7, 209; trade unions in, 120–21; unemployment insurance in, 19, 26, 29, 31, 42, 127; university system in, 48, 53; welfare state policies in, 5–9, 11–12, 15–19, 25–31, 35–36, 40–53, 86–87, 118–19, 122–24, 126–28, 137, 140, 213–15; World War II and, 31, 43 United States: austerity politics in, 1; China and, 201; collective goods in, 184; federalism in, 178; food aid to post-World War II Germany and, 58; Global Financial Crisis and, 143, 192–94; health insurance in, 2, 8; Hobson and, 77; Japan and, 10–11, 155, 157, 159–60; law and economics discipline in, 6; liberal market economy in, 8; neoliberalism in, 72, 121, 153, 164, 197; New Deal in, 207; Rodenstock on, 135; school voucher proposals in, 48; semi- public building societies in, 205; taxation in, 140; think tank networks in, 194, 204; welfare state policies and, 2, 6, 12, 137, 140, 214 University Grants Committee (UGC; United Kingdom), 48 The Unservile State (Peacock), 40 Unservile State Group, 40 utilitarianism, 27, 32–36 Van Suntum, Ulrich, 137, 140 varieties-of-capitalism (VofC) scholarship, 132, 138 Verein für Socialpolitik, 68, 77 “Views of Erhard” (Yamamoto), 87 Vitalpolitik (holistic approach to conservative values), 65 Volcker, Paul, 196 Volkswagen, 67 Voluntary Action (Beveridge), 43 Wages Council (United Kingdom), 122 Wakatsuki Reijiro, 154–55 Walpen, Bernhard, 209 Wandel Report, 76 A Warning on the Preference for Social Security (Yamamoto), 85–86 Warren, Robert, 183–84 “The Washington Consensus,” 154, 164–66, 198 Wealth and Welfare (Pigou), 28 Webb, Beatrice, 26, 30, 77, 81 Webb, Sidney, 26, 30, 77, 81–82 Weber, Alfred, 65 Weber, Max, 64, 147 Weeks, Hugh, 110 Welfare for Everybody See Wohlstand für Alle Welfare Reform and Pensions Act (United Kingdom, 1999), 19 the welfare state: arguments in favor of, 3–4, 213; business cycles and, 30–31; capital mobility and, 13; collectivism and, 35; declining power of, 2–3, 6–7, 212–13; economic growth and, 3, 7; full employment goal and, 25, 39; “fullness of life” considerations and, 27; in Germany, 5–8, 11–12, 15, 133–45, 213–14; Global Financial Crisis (2008–9) and, 1–2; income redistribution and, 3, 7, 9; in Japan, 7–8, 10–12, 15–19, 75–77, 84–88, 92–94, 152, 166, 213–15; liberalism and, 5, 9, 26–31, 35, 39–44, 52–53, 212–13; need- based criteria and, 5, 17, 19, 42, 53, 123, 212; neoliberal critiques of, 4–5, 9, 13, 40, 49, 102–4, 107–12, 119, 121, 123, 126–27, 187, 194, 201, 212–13, 215–16; New Deal and, 207; privatization the functions of, 2–3, 6, 18, 41; public choice theory and, 41; public works programs and, 30; reform proposals regarding, 2–3, 12; risk normalization and, 26; status differentiation and, 5–6; in the United Kingdom, 5–9, 11–12, 15–19, 25–31, 35–36, 40–53, 86–87, 118–19, 122– 24, 126–28, 137, 140, 213–15; in the United States, 2, 6, 12, 137, 140, 214; universality principles and, 5–6, 16, 40, 53, 108, 123, 212; in West Germany, 9–10, 16–17, 87 The Welfare State Decays the Nation (Yamamoto), 76, 84 Westerwelle, Guido, 138, 144 West Germany (1949–89) See also Germany: Ahlen Program Index | 249 proposal (1947) and, 57; Außenwirtschaftsgesetz (1961 economic reform) in, 66; constitution of, 16, 58, 61; currency reform (1948) and, 58, 66; “economic miracle” in, 57, 65, 89, 135; employment policy and, 71; exchange rates in, 70–71; health insurance in, 17; inflation in, 70–71; Keynesian ideas in, 59, 67–71; Law for the Promotion of Economic Stability and Growth in, 69; monetary policy in, 70– 72; oil price shocks (1970s) in, 70, 72; ordoliberalism in, 9–10, 66, 216; pensions in, 16, 67, 137, 214; poverty relief programs in, 17; public education in, 17; recession (1966–67) in, 69; social- market economy as model of, 65; Stability and Growth Act (1967) in, 10, 69–70; trade unions in, 10, 67–70, 72; welfare state policies in, 9–10, 16–17, 87 What Is Neoliberalism? (Nishiyama et al.), 91 Whelan, Charlie, 122 White, Lawrence H., 203 “Why Do the Markets Still Have a Role?” (2009 Eyes on Europe article), 205 Wilkinson, Richard G., 4 Willett, Thomas, 196 Willink Committee, 47 Wilson, Harold, 110, 120 Wilson, Woodrow, 172, 178 Wiseman, Jack, 48 Wohlgemuth, Michael, 59, 208 250 | Index Wohlstand für Alle (Welfare for Everybody, Erhard), 57, 85, 87–89 Wolf, Martin, 199, 207 Wootton, Barbara, 180 World Bank, 165 World Economy (Sekai Keizai; Japanese journal), 84 World War I, 28, 186 Yamada Yuzo, 78–80, 89 Yamamoto Katsuichi See also specific works: Beveridge Plan critiqued by, 86–87; biographical background of, 85; on economic calculation, 85–86; on employment policy, 84, 86; Erhard and, 87–88; Hayek and, 89; Ishibashi and, 86, 93; Koga and, 92; Liberal Democratic Party and, 76, 84; Liberal Party and, 86; as member of parliament, 86; on minimum living provisions, 87; Mises and, 76, 85–86, 89; neoliberalism and, 11, 75–76, 78, 84–89, 93–94; Röpke and, 88–89; self-help emphasized by, 87–88; socialism and state planning critiqued by, 85–86, 88; welfare state policies opposed by, 75, 84–88, 93 Yasukuni Shrine (Japan), 159 Yoshida Shigeru, 79 zaikai-seiri (Japanese “market discipline” policy), 154, 156–57 zaisei (Inoue administration fiscal policy), 153–54, 156, 159–60, 164 Zimmermann, Klaus, 137 Zweynert, Joachim, 208 .. .Liberalism and the Welfare State Liberalism and the Welfare State Economists and Arguments for the Welfare State Edited by Roger E Backhouse Bradley... New Liberalism to Neoliberalism: Japanese Economists and the Welfare State before the 1980sâ•… 75 Tamotsu Nishizawa and Yukihiro Ikeda PART II ╇Neoliberalism and the Changing Understanding... explores the role of economists in laying the intellectual foundations for arguments for and against the welfare state Economists and economic ideas matter more than ever with regard to welfare (state)