Welfare is a type of government support for the citizens of that society. Welfare may be provided to people of any income level, as with social security, but it is intended to ensure that the poor can meet their basic human needs such as food and shelter. Welfare attempts to provide poor people with a minimal level of well-being either a free- or a subsidized-supply of certain goods and social services, such as healthcare and vocational training. A welfare state is a political system wherein the State assumes responsibility for the health and welfare of society; the system of social security in a welfare state provides social services, such as universal medical care, unemployment insurance for workers, financial aid, free post-secondary education for students, subsidized public housing, pensions, etc. In 1952, with the Social Security Convention, the International Labour Organization formally defined the social contingencies covered by social security; the first welfare state was Imperial Germany, where the Bismarck government introduced social security in the late 19th century.
In the early 20th century, Great Britain introduced social security around 1913, adopted the welfare state with the National Insurance Act 1946, during the Attlee government. In the countries of western Europe and Australasia, social welfare is provided by the government out of the national tax revenues, to a lesser extent by non-government organizations, charities. In the U. S. welfare program is the general term for government support of the well-being of poor people, the term social security refers to the US social insurance program for retired and disabled people. In other countries, the term social security has a broader definition, which refers to the economic security that a society offers when people are sick and unemployed. In the U. K. government use of the term welfare includes help for poor people and benefits, including specific social services such as help in finding employment. In the Roman Empire, the first emperor Augustus provided the Cura Annonae or grain dole for citizens who could not afford to buy food every month.
Social welfare was enlarged by the Emperor Trajan. Trajan's program brought acclaim including Pliny the Younger; the Song dynasty government supported multiple programs which could be classified as social welfare, including the establishment of retirement homes, public clinics, paupers' graveyards. According to economist Robert Henry Nelson, "The medieval Roman Catholic Church operated a far-reaching and comprehensive welfare system for the poor..."Early welfare programs in Europe included the English Poor Law of 1601, which gave parishes the responsibility for providing welfare payments to the poor. This system was modified by the 19th-century Poor Law Amendment Act, which introduced the system of workhouses. Public assistance programs were not called welfare until the early 20th century when the term was adopted to avoid the negative connotations that had become associated with older terms such as charity, it was predominantly in the late 19th and early 20th centuries that an organized system of state welfare provision was introduced in many countries.
Otto von Bismarck, Chancellor of Germany, introduced one of the first welfare systems for the working classes. In Great Britain the Liberal government of Henry Campbell-Bannerman and David Lloyd George introduced the National Insurance system in 1911, a system expanded by Clement Attlee; the United States inherited England's poor house laws and has had a form of welfare since before it won its independence. During the Great Depression, when emergency relief measures were introduced under President Franklin D. Roosevelt, Roosevelt's New Deal focused predominantly on a program of providing work and stimulating the economy through public spending on projects, rather than on cash payment. Modern welfare states include Germany, the Netherlands, as well as the Nordic countries, such as Iceland, Norway and Finland which employ a system known as the Nordic model. Esping-Andersen classified the most developed welfare state systems into three categories. In the Islamic world, one of the Five Pillars of Islam, has been collected by the government since the time of the Rashidun caliph Umar in the 7th century.
The taxes were used to provide income for the needy, including the poor, orphans and the disabled. According to the Islamic jurist Al-Ghazali, the government was expected to store up food supplies in every region in case a disaster or famine occurred; the World Bank's 2019 World Development Report on The Changing Nature of Work considers whether traditional social assistance models continue to be appropriate given that, in 2018, 8 in 10 people in developing countries still receive no social assistance while 6 in 10 work informally beyond the government's reach. Welfare can take a variety of forms, such as monetary payments and vouchers, or housing assistance. Welfare systems differ from country to country, but welfare is provided to individuals who are unemployed, those with illness or disability, the elderly, those with dependent children, veterans. A person's eligibility for welfare may be constrained by means testing or other conditions. Welfare is provided by governments or their agencies, by private organizations, or a combination of both.
Funding for welfare comes from general government revenue, but when d
Welfare economics is a branch of economics that uses microeconomic techniques to evaluate well-being at the aggregate level. A typical methodology begins with the derivation of a social welfare function, which can be used to rank economically feasible allocations of resources in terms of the social welfare they entail; such functions include measures of economic efficiency and equity, though more recent attempts to quantify social welfare have included a broader range of measures including economic freedom. The field of welfare economics is associated with two fundamental theorems; the first states. The second states that given further restrictions, any Pareto efficient outcome can be supported as a competitive market equilibrium, thus a social planner could use a social welfare function to pick the most equitable efficient outcome use lump sum transfers followed by competitive trade to bring it about. Because of welfare economics' close ties to social choice theory, Arrow's impossibility theorem is sometimes listed as a third fundamental theorem.
Attempting to apply the principles of welfare economics gives rise to the field of public economics, the study of how government might intervene to improve social welfare. Welfare economics provides the theoretical foundations for particular instruments of public economics, including cost–benefit analysis, while the combination of welfare economics and insights from behavioral economics has led to the creation of a new subfield, behavioral welfare economics; the early Neoclassical approach was developed by Edgeworth, Sidgwick and Pigou. It assumes the following: Utility is cardinal, that is, scale-measurable by observation or judgment. Preferences are exogenously given and stable. Additional consumption provides smaller increases in utility. All individuals have interpersonally commensurable utility functions. With these assumptions, it is possible to construct a social welfare function by summing all the individual utility functions. Note that such a measure would still be concerned with the distribution of income but not the distribution of final utilities.
In normative terms, such authors were writing in the Benthamite tradition. The New Welfare Economics approach is based on the work of Pareto and Kaldor, it explicitly recognizes the differences between the efficiency aspect of the discipline and the distribution aspect and treats them differently. Questions of efficiency are assessed with criteria such as Pareto efficiency and the Kaldor-Hicks compensation tests, while questions of income distribution are covered in social welfare function specification. Further, efficiency dispenses with cardinal measures of utility, replacing it with ordinal utility, which ranks commodity bundles. Situations are considered to have distributive efficiency when goods are distributed to the people who can gain the most utility from them. Many economists use Pareto efficiency as their efficiency goal. According to this measure of social welfare, a situation is optimal only if no individuals can be made better off without making someone else worse off; this ideal state of affairs can only come about if four criteria are met: The marginal rates of substitution in consumption are identical for all consumers.
This occurs. The marginal rate of transformation in production is identical for all products; this occurs when it is impossible to increase the production of any good without reducing the production of other goods. The marginal resource cost is equal to the marginal revenue product for all production processes; this takes place when marginal physical product of a factor must be the same for all firms producing a good. The marginal rates of substitution in consumption are equal to the marginal rates of transformation in production, such as where production processes must match consumer wants. There are a number of conditions, they include: Imperfect market structures, such as a monopoly, oligopoly and monopolistic competition. Factor allocation inefficiencies in production theory basics. Market failures and externalities. Price discrimination and price skimming. Asymmetric information, principal–agent problems. Long run declining average costs in a natural monopoly. Certain types of taxes and tariffs.
To determine whether an activity is moving the economy towards Pareto efficiency, two compensation tests have been developed. Any change makes some people better off while making others worse off, so these tests ask what would happen if the winners were to compensate the losers. Using the Kaldor criterion, an activity will contribute to Pareto optimality if the maximum amount the gainers are prepared to pay is greater than the minimum amount that the losers are prepared to accept. Under the Hicks criterion, an activity will contribute to Pareto optimality if the maximum amount the losers are prepared to offer to the gainers in order to prevent the change is less than the minimum amount the gainers are prepared to accept as a bribe to forgo the change; the Hicks compensation test is from the losers' point of view, while the Kaldor compensation test is from the gainers' point of view. If both conditions are satisfied, both gainers and losers will agree that the proposed activity will move the economy toward Pareto optimality.
This is ref
An economist is a practitioner in the social science discipline of economics. The individual may study and apply theories and concepts from economics and write about economic policy. Within this field there are many sub-fields, ranging from the broad philosophical theories to the focused study of minutiae within specific markets, macroeconomic analysis, microeconomic analysis or financial statement analysis, involving analytical methods and tools such as econometrics, economics computational models, financial economics, mathematical finance and mathematical economics; the professionalization of economics, reflected in academia, has been described as "the main change in economics since around 1900." Economists debate the path. It is a debate between a scholastic orientation, focused on mathematical techniques, a public discourse orientation, more focused on communicating to lay people pertinent economic principles as they relate to public policy. Surveys among economists indicate a preference for a shift toward the latter.
Most major universities have an economics faculty, school or department, where academic degrees are awarded in economics. Getting a PhD in economics takes six years, on average, with a median of 5.3 years. The Nobel Memorial Prize in Economics, established by Sveriges Riksbank in 1968, is a prize awarded to economists each year for outstanding intellectual contributions in the field of economics; the prize winners are announced in October every year. They receive their awards on the anniversary of Alfred Nobel's death. Economists work in many fields including academia, government and in the private sector, where they may "...study data and statistics in order to spot trends in economic activity, economic confidence levels, consumer attitudes. They assess this information using advanced methods in statistical analysis, computer programming they make recommendations about ways to improve the efficiency of a system or take advantage of trends as they begin."In contrast to regulated professions such as engineering, law or medicine, there is not a required educational requirement or license for economists.
In academia, to be called an economist requires a Ph. D. degree in Economics. In the US government, on the other hand, a person can be hired as an economist provided that they have a degree that included or was supplemented by 21 semester hours in economics and three hours in statistics, accounting, or calculus. A professional working inside of one of many fields of economics or having an academic degree in this subject is considered to be an economist. In addition to government and academia, economists are employed in banking, accountancy, marketing, business administration and non- or not-for profit organizations. Politicians consult economists before enacting economic policy. Many statesmen have academic degrees in economics. Economics graduates are employable in varying degrees depending on the regional economic scenario and labour market conditions at the time for a given country. Apart from the specific understanding of the subject, employers value the skills of numeracy and analysis, the ability to communicate and the capacity to grasp broad issues which the graduates acquire at the university or college.
Whilst only a few economics graduates may be expected to become professional economists, many find it a base for entry into a career in finance – including accounting, insurance and banking, or management. A number of economics graduates from around the world have been successful in obtaining employment in a variety of major national and international firms in the financial and commercial sectors, in manufacturing, retailing and IT, as well as in the public sector – for example, in the health and education sectors, or in government and politics. Small numbers go on to undertake postgraduate studies, either in economics, teacher training or further qualifications in specialist areas. In Brazil, unlike most countries in the world where the profession is not regulated, the profession of Economist is regulated by Law. 1411 of August 13, 1951. The professional designation of economist, according to the said law, is exclusive to the bachelors in economics graduates in Brazil. According to the United States Department of Labor, there were about 15,000 non-academic economists in the United States in 2008, with a median salary of $83,000 the top ten percent earning more than $147,040 annually.
Nearly 135 colleges and universities grant around 900 new Ph. D.s every year. Incomes are highest for those in the private sector, followed by the federal government, with academia paying the lowest incomes; as of January 2013, PayScale.com showed Ph. D. economists' salary ranges as follows: all Ph. D. economists, $61,000 to $160,000. D. corporate economists, $71,000 to $207,000. The largest single professional grouping of economists in the UK are the more than 1000 members of the Government Economic Service, who work in 30 government departments and agencies. Analysis of destination surveys for economics graduates from a number of selected top schools of economics in the United Kingdom, shows nearly 80 percent in employment six months after graduation – with a wide range of roles and employers, including regional and international organisations, across many sectors; this figure compares favourably with the national picture, with 64 percent of economics graduates in employment. Some current we
Economics is the social science that studies the production and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents. Microeconomics analyzes basic elements in the economy, including individual agents and markets, their interactions, the outcomes of interactions. Individual agents may include, for example, firms and sellers. Macroeconomics analyzes the entire economy and issues affecting it, including unemployment of resources, economic growth, the public policies that address these issues. See glossary of economics. Other broad distinctions within economics include those between positive economics, describing "what is", normative economics, advocating "what ought to be". Economic analysis can be applied throughout society, in business, health care, government. Economic analysis is sometimes applied to such diverse subjects as crime, the family, politics, social institutions, war and the environment; the discipline was renamed in the late 19th century due to Alfred Marshall, from "political economy" to "economics" as a shorter term for "economic science".
At that time, it became more open to rigorous thinking and made increased use of mathematics, which helped support efforts to have it accepted as a science and as a separate discipline outside of political science and other social sciences. There are a variety of modern definitions of economics. Scottish philosopher Adam Smith defined what was called political economy as "an inquiry into the nature and causes of the wealth of nations", in particular as: a branch of the science of a statesman or legislator a plentiful revenue or subsistence for the people... to supply the state or commonwealth with a revenue for the publick services. Jean-Baptiste Say, distinguishing the subject from its public-policy uses, defines it as the science of production and consumption of wealth. On the satirical side, Thomas Carlyle coined "the dismal science" as an epithet for classical economics, in this context linked to the pessimistic analysis of Malthus. John Stuart Mill defines the subject in a social context as: The science which traces the laws of such of the phenomena of society as arise from the combined operations of mankind for the production of wealth, in so far as those phenomena are not modified by the pursuit of any other object.
Alfred Marshall provides a still cited definition in his textbook Principles of Economics that extends analysis beyond wealth and from the societal to the microeconomic level: Economics is a study of man in the ordinary business of life. It enquires how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man. Lionel Robbins developed implications of what has been termed "erhaps the most accepted current definition of the subject": Economics is a science which studies human behaviour as a relationship between ends and scarce means which have alternative uses. Robbins describes the definition as not classificatory in "pick out certain kinds of behaviour" but rather analytical in "focus attention on a particular aspect of behaviour, the form imposed by the influence of scarcity." He affirmed that previous economists have centred their studies on the analysis of wealth: how wealth is created and consumed. But he said that economics can be used to study other things, such as war, that are outside its usual focus.
This is because war has as the goal winning it, generates both cost and benefits. If the war is not winnable or if the expected costs outweigh the benefits, the deciding actors may never go to war but rather explore other alternatives. We cannot define economics as the science that studies wealth, crime and any other field economic analysis can be applied to; some subsequent comments criticized the definition as overly broad in failing to limit its subject matter to analysis of markets. From the 1960s, such comments abated as the economic theory of maximizing behaviour and rational-choice modelling expanded the domain of the subject to areas treated in other fields. There are other criticisms as well, such as in scarcity not accounting for the macroeconomics of high unemployment. Gary Becker, a contributor to the expansion of economics into new areas, describes the approach he favours as "combin assumptions of maximizing behaviour, stable preferences, market equilibrium, used relentlessly and unflinchingly."
One commentary characterizes the remark as making economics an approach rather than a subject matter but with great specificity as to the "choice process and the type of social interaction that analysis involves." The same source reviews a range of definitions included in principles of economics textbooks and concludes that the lack of agreement need not affect the subject-matter that the texts treat. A