Question

Why is welfare capitalism the best economy?

Answer 1

Welfare capitalism is capitalism that includes social welfare policies.[1]Welfare capitalism is also the practice of businesses providing welfare services to their employees. Welfare capitalism in this second sense, or industrial paternalism, was centered on industries that employed skilled laborand peaked in the mid-20th century.

Today, welfare capitalism is most often associated with the models of capitalism found in Central Mainland and Northern Europe, such as the Nordic model, social market economy and Rhine capitalism. In some cases welfare capitalism exists within a mixed economy, but welfare states can and do exist independently of policies common to mixed economies such as state interventionism and extensive regulation.

Answer 2

Well welfare state policies are simply one of the many ways nation-states attempt to address the harmful effects of Capitalist economies have on their populations. While their efforts at harm reduction towards the working class is appreciated, the ultimate problem with the welfare state is that its funding is reliant upon the will or ability for the Capitalist class to pay for them, whether directly through Corporate taxes or Commercial property tax or indirectly through the taxable income they pay their employees. As a result, governments will inevitably find themselves in a scenario where their ability to provide social services is inextricably tied to the profitability of private firms, hence the reason the austerity crisis is currently taking place globally.