Chapter 13 Notes
John Maynard Keynes asserted that in times of economic downturn, national governments
should establish social programs to ensure that people would still have enough money to
purchase goods, thus sustaining individuals and families and keeping economies functioning. In
the Keynesian welfare state, governments were to finance this intervention by increasing taxes
in times of economic growth and by deficit spending in times of economic slowdown.
Neo-liberalism was a response to the perceived failures of Keynesianism, particularly high levels
of public debt, declining economic competitiveness and a culture of entitlement through which
an overly generous welfare state was said to have created a passive, dependent citizenry with a
weak work ethic.
Financial collapse of many of the world’s large banks, investment firms, and some national
treasuries indicated that regulation was necessary and that the state did have a role to play to
ensure some stability in the financial system.
Some social welfare programs are delivered as direct services; children attend primary and
Some social welfare programs are delivered as indirect services. (TAX reduction; child tax benefit
given every month)
Our eligibility for social welfare is also determined on a variety of bases, generally categorized as
universal, contributory, and means-tested. Access to health care in Canada, for example is
considered as a universal entitlement. Pension Plan are contributory social programs in that all
workers and employers pay a portion of their earning into these schemes. Contributions do not
guarantee access to benefits when people need them due to eligibility criteria. Means test
program – social assistance was a key site of neo-liberal policy reform in most Canadian
Keynesian model of socia