Welfare state in the context of Well-being

The social market economy (SOME; German: soziale Marktwirtschaft, German pronunciation: [zoˌt͡si̯aːlə ˈmaʁktˌvɪʁtʃaft] ), also called Rhine capitalism, Rhine-Alpine capitalism, the Rhenish model, and social capitalism, is a socioeconomic model and ideology combining a free-market capitalist economic system with social policies and enough regulation to establish both fair competition within the market and generally a welfare state. It is sometimes classified as a regulated market economy. The social market economy was originally promoted and implemented in West Germany by the Christian Democratic Union under Chancellor Konrad Adenauer in 1949 and today it is used by ordoliberals, social liberals and social democrats alike. Its origins can be traced to the interwar Freiburg school of economic thought.

The social market economy was designed to be a middle way between laissez-faire forms of capitalism and socialist economics. It was strongly inspired by ordoliberalism, which was influenced by the political ideology of Christian democracy. Social market refrains from attempts to plan and guide production, the workforce, or sales but support planned efforts to influence the economy through the organic means of a comprehensive economic policy coupled with flexible adaptation to market studies. Combining monetary, credit, trade, tax, customs, investment, and social policies, as well as other measures, this type of economic policy aims to create an economy that serves the welfare and needs of the entire population, thereby fulfilling its ultimate goal.

Socialism is an economic and political philosophy encompassing diverse economic and social systems characterised by social ownership of the means of production, as opposed to private ownership. It describes the economic, political, and social theories and movements associated with the implementation of such systems. Social ownership can take various forms, including public, community, collective, cooperative, or employee. As one of the main ideologies on the political spectrum, socialism is the standard left-wing ideology in most countries. Types of socialism vary based on the role of markets and planning in resource allocation, and the structure of management in organizations.

Socialist systems are divided into non-market and market forms. A non-market socialist system seeks to eliminate the perceived inefficiencies, irrationalities, unpredictability, and crises that socialists traditionally associate with capital accumulation and the profit system. Market socialism retains the use of monetary prices, factor markets and sometimes the profit motive. As a political force, socialist parties and ideas exercise varying degrees of power and influence, heading national governments in several countries. Socialist politics have been internationalist and nationalist; organised through political parties and opposed to party politics; at times overlapping with trade unions and other times independent and critical of them, and present in industrialised and developing nations. Social democracy originated within the socialist movement, supporting economic and social interventions to promote social justice. While retaining socialism as a long-term goal, in the post-war period social democracy embraced a mixed economy based on Keynesianism within a predominantly developed capitalist market economy and liberal democratic polity that expands state intervention to include income redistribution, regulation, and a welfare state.

Japan has a highly developed mixed economy, often referred to as an East Asian model. According to the IMF forecast for 2025, it will be the fourth-largest economy in the world by nominal GDP and the fifth-largest by purchasing power parity (PPP) by the end of the year. It constituted 3.7% of the world's economy on a nominal basis in 2024. According to the same forecast, the country's nominal per capita GDP (PPP) will be $56,440 (2025). Due to a volatile currency exchange rate, Japan's nominal GDP as measured in American dollars fluctuates sharply.

A founding member of the G7 and an early member of the OECD, Japan was the first country in Asia to achieve developed country status. In 2024, Japan was the sixth-largest in the world as an importer and eight-largest as an exporter. The country also has the world's fourth-largest consumer market. Japan used to run a considerable trade surplus, but the decline of the manufacturing sector since the 1980s and increased fossil fuel imports after the Fukushima nuclear accident in 2011 have changed this trend in recent years. Being the world's largest creditor nation, Japan has a considerable net international investment surplus. The country has the world's second-largest foreign-exchange reserves, worth $1.4 trillion. Japan has the third-largest financial assets in the world, valued at $12 trillion, or 8.6% of the global GDP total as of 2020. Japan has a highly efficient and strong social security system, which comprises roughly 23.5% of GDP. The Tokyo Stock Exchange is the world's fourth-largest stock exchange by market capitalisation as of 2025.

South Korea has a highly developed mixed economy. By nominal GDP, the economy was worth ₩2.61 quadrillion (US$1.87 trillion). It has the 4th largest economy in Asia and the 13th largest in the world as of 2025. South Korea is notable for its rapid economic development from an underdeveloped nation to a developed, high-income country in a few decades. This economic growth has been described as the Miracle on the Han River, which has allowed it to join the OECD and the G20. It is included in the group of Next Eleven countries as having the potential to play a dominant role in the global economy by the middle of the 21st century. Among OECD members, South Korea has a highly efficient and strong social security system; social expenditure stood at roughly 15.5% of GDP. South Korea spends around 4.93% of GDP on advanced research and development across various sectors of the economy.

South Korea's education system and the establishment of a motivated and educated populace were largely responsible for spurring the country's high technology boom and economic development. South Korea began to adapt an export-oriented economic strategy in the 1960s to fuel its economy. In 2022, South Korea was the ninth largest exporter and ninth largest importer in the world. The Bank of Korea and the Korea Development Institute periodically release major economic indicators and economic trends of the economy of South Korea.

Welfare spending is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifically to social insurance programs which provide support only to those who have previously contributed (e.g. pensions), as opposed to social assistance programs which provide support on the basis of need alone (e.g. most disability benefits). The International Labour Organization defines social security as covering support for those in old age, support for the maintenance of children, medical treatment, parental and sick leave, unemployment and disability benefits, and support for sufferers of occupational injury.

More broadly, welfare may also encompass efforts to provide a basic level of well-being through subsidized social services such as healthcare, education, infrastructure, vocational training, and public housing. In a welfare state, the state assumes responsibility for the health, education, infrastructure and welfare of society, providing a range of social services such as those described.

Some professionals and universities consider social policy a subset of public policy, while other practitioners characterize social policy and public policy to be two separate, competing approaches for the same public interest (similar to MD and DO in healthcare), with social policy deemed more holistic than public policy. Whichever of these persuasions a university adheres to, social policy begins with the study of the welfare state and social services. It consists of guidelines, principles, legislation and associated activities that affect the living conditions conducive to human welfare, such as a person's quality of life. The Department of Social Policy at the London School of Economics defines social policy as "an interdisciplinary and applied subject concerned with the analysis of societies' responses to social need", which seeks to foster in its students a capacity to understand theory and evidence drawn from a wide range of social science disciplines, including economics, sociology, psychology, geography, history, law, philosophy and political science. The Malcolm Wiener Center for Social Policy at Harvard University describes social policy as "public policy and practice in the areas of health care, human services, criminal justice, inequality, education, and labor". Social policy might also be described as actions that affect the well-being of members of a society through shaping the distribution of and access to goods and resources in that society. Social policy often deals with wicked problems.

The discussion of 'social policy' in the United States and Canada can also apply to governmental policy on social issues such as tackling racism, LGBT issues (such as same-sex marriage) and the legal status of abortion, guns, euthanasia, recreational drugs and prostitution. In other countries, these issues would be classified under health policy and domestic policy.

Social democracy is a social, economic, and political philosophy within socialism that supports political and economic democracy and a gradualist, reformist, and democratic approach toward achieving social equality. In modern practice, social democracy has taken the form of democratic socialism, a robust welfare state, policies promoting social justice, market regulation, and a more equitable distribution of income.

Social democracy maintains a commitment to representative and participatory democracy. Common aims include curbing inequality, eliminating the oppression of underprivileged groups, eradicating poverty, and upholding universally accessible public services such as child care, education, elderly care, health care, and workers' compensation. Economically, it supports income redistribution and regulating the economy in the public interest.

Christian democracy is an ideology inspired by Christian social teaching to respond to the challenges of contemporary society and politics.

Christian democracy has drawn mainly from Catholic social teaching and neo-scholasticism, as well as the Neo-Calvinist tradition within Christianity; it later gained ground with Lutherans and Pentecostals, among other denominational traditions of Christianity in various parts of the world. During the nineteenth century, its principal concerns were to reconcile Catholicism with democracy, to answer the "social question" surrounding capitalism and the working class, and to resolve the tensions between church and state. In the twentieth century, Christian democrats led postwar Western and Southern Europe in building modern welfare states and constructing the European Union. Furthermore, in the late twentieth and early twenty-first century, Christian democracy has gained support in Eastern Europe among former communist states suffering from corruption and stagnation.

Anarcho-syndicalism is an anarchist organisational model that centres trade unions as a vehicle for class conflict. Drawing from the theory of libertarian socialism and the practice of syndicalism, anarcho-syndicalism sees trade unions as both a means to achieve immediate improvements to working conditions and to build towards a social revolution in the form of a general strike, with the ultimate aim of abolishing the state and capitalism. Anarcho-syndicalists consider trade unions to be the prefiguration of a post-capitalist society and seek to use them in order to establish workers' control of production and distribution. An anti-political ideology, anarcho-syndicalism rejects political parties and participation in parliamentary politics, considering them to be a corrupting influence on the labour movement. In order to achieve their material and economic goals, anarcho-syndicalists instead practice direct action in the form of strike actions, boycotts and sabotage. Anarcho-syndicalists also attempt to build solidarity among the working class, in order to unite workers against the exploitation of labour and build workers' self-management.

The foundations of anarcho-syndicalism were laid by the anti-authoritarian faction of the International Workingmen's Association (IWMA) and developed by the French General Confederation of Labour (CGT). Anarcho-syndicalism was constituted as a specific tendency following the International Anarchist Congress of Amsterdam in 1907, which led to anarcho-syndicalism becoming the dominant form of trade union organisation in Europe and Latin America. After facing suppression during the Revolutions of 1917–1923, anarcho-syndicalists established the International Workers' Association (IWA) in 1922. Anarcho-syndicalism reached its apex during the Spanish Revolution of 1936, when the National Confederation of Labour (CNT) established an anarcho-syndicalist economy throughout much of the Spanish Republic. Anarcho-syndicalism went into decline after the defeat of the anarchists in the Spanish Civil War in 1939. The movement split into two factions: the "orthodox" faction, which held to traditional syndicalist principles in spite of changing material conditions; and the "revisionist" faction, which aimed to achieve a mass base and work within the framework of newly established welfare states. By the end of the 20th century, the rise of neoliberalism and the collapse of the Eastern Bloc had led to a revival in anarcho-syndicalism, with syndicalist unions once again being established throughout the globe.

The labour movement is the collective organisation of working people to further their shared political and economic interests. It consists of the trade union or labour union movement, as well as political parties of labour. It can be considered an instance of class conflict.

• In trade unions, workers campaign for higher wages, better working conditions and fair treatment from their employers, and through the implementation of labour laws, from their governments. They do this through collective bargaining, sectoral bargaining, and when needed, strike action. In some countries, co-determination gives representatives of workers seats on the board of directors of their employers.

• Political parties representing the interests of workers campaign for labour rights, social security and the welfare state. They are usually called a labour party (in English-speaking countries), a social democratic party (in Germanic and Slavic countries), a socialist party (in Romance countries), or sometimes a workers' party.
• Though historically less prominent, the cooperative movement campaigns to replace capitalist ownership of the economy with worker cooperatives, consumer cooperatives, and other types of cooperative ownership. This is related to the concept of economic democracy.

The labour movement developed as a response to capitalism and the Industrial Revolution of the late 18th and early 19th centuries, at about the same time as socialism. The early goals of the movement were the right to unionise, the right to vote, democracy, safe working conditions and the 40-hour week. As these were achieved in many of the advanced economies of Western Europe and North America in the early decades of the 20th century, the labour movement expanded to issues of welfare and social insurance, wealth distribution and income distribution, public services like health care and education, social housing and in some cases common ownership.

Right-wing populism, also called national populism and right populism, is a political ideology that combines right-wing politics with populist rhetoric and themes. Its rhetoric employs anti-elitist sentiments, opposition to the Establishment, and speaking to or for the common people. Recurring themes of right-wing populists include neo-nationalism, social conservatism, economic nationalism and fiscal conservatism. Frequently they aim to defend a national culture, identity and economy against perceived attacks by outsiders.

Right-wing populism has associations with authoritarianism, while some far-right populists draw comparisons to fascism. Right-wing populism in the Western world is sometimes associated with ideologies such as anti-environmentalism, anti-globalisation, nativism, and protectionism. In Europe the term is often used to describe groups, politicians and political parties generally known for their opposition to immigration, and for Euroscepticism. Some right-wing populists may support expanding the welfare state, but only for those they deem fit to receive it; this concept has been referred to as "welfare chauvinism". Since the Great Recession, European right-wing populist movements began to grow in popularity, in large part due to increasing opposition to immigration from the Middle East and Africa, rising Euroscepticism and discontent with the economic policies of the European Union.

The Armenian Quarter (Armenian: Հայոց թաղ, romanized: Hayots t'agh; Arabic: حارة الأرمن, romanized: Ḥāraṫ al-Arman; Hebrew: הרובע הארמני, romanized: Ha-Rova ha-Armeni) is one of the four sectors of the walled Old City of Jerusalem. Located in the southwestern corner of the Old City, it can be accessed through the Zion Gate and Jaffa Gate. It occupies an area of 0.126 km² (126 dunam), which is 14% of the Old City's total. In 2007, it had a population of 2,424 (6.55% of Old City's total). In both criteria, it is comparable to the Jewish Quarter. The Armenian Quarter is separated from the Christian Quarter by David Street (Suq el-Bazaar) and from the Jewish Quarter by Habad Street (Suq el-Husur).

The Armenian presence in Jerusalem dates back to the 4th century CE, when Armenia adopted Christianity as a national religion and Armenian monks settled in Jerusalem. Hence, it is considered the oldest living diaspora community outside the Armenian homeland. Gradually, the quarter developed around the St. James Monastery—which dominates the quarter—and took its modern shape by the 19th century. The monastery houses the Armenian Apostolic Church's Jerusalem Patriarchate, which was established as a diocese in the 7th century CE. The patriarchate is the de facto administrator of the quarter and acts as a "mini-welfare state" for the approximately 2,000 Armenian residents.

Welfare capitalism is capitalism that includes social welfare policies and/or 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 labor and 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 and social market economy (also known as Rhine capitalism and social 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.

The United States has a highly developed diversified market-oriented mixed economy. It is the world's largest economy by nominal GDP and second largest by purchasing power parity (PPP). As of 2025, it has the world's ninth-highest nominal GDP per capita and eleventh-highest GDP per capita by PPP. According to the World Bank, the U.S. accounted for 14.8% of the global aggregate GDP in 2024 in purchasing power parity terms and 26.2% in nominal terms. The U.S. dollar is the currency most used in international transactions and the world's foremost reserve currency, backed by a large U.S. treasuries market, its role as the reference standard for the petrodollar system, and its linked eurodollar. Several countries use it as their official currency and in others it is the de facto currency. Since the end of World War II, the economy has achieved relatively steady growth, low unemployment and inflation, and rapid advances in technology.

The American economy is fueled by high productivity, well-developed transportation infrastructure, and extensive natural resources. Americans have the sixth highest average household and employee income among OECD member states. In 2021, they had the highest median household income among OECD countries, although the country also had one of the world's highest income inequalities among the developed countries. The largest U.S. trading partners are Mexico, Canada, China, Japan, Germany, South Korea, the United Kingdom, Taiwan, India, and Vietnam. The U.S. is the world's largest importer and second-largest exporter. It has free trade agreements with several countries, including Canada and Mexico (through the USMCA), Australia, South Korea, Israel, and several others that are in effect or under negotiation. The U.S. has a highly flexible labor market, where the industry adheres to a hire-and-fire policy, and job security is relatively low. Among OECD nations, the U.S. has a highly efficient social security system; social expenditure stood at roughly 30% of GDP.

The Liberal Party was one of the two major political parties in the United Kingdom, along with the Conservative Party, in the 19th and early 20th centuries. Beginning as an alliance of Whigs, free trade–supporting Peelites, and reformist Radicals in the 1850s, by the end of the 19th century, it had formed four governments under William Ewart Gladstone. Despite being divided over the issue of Irish Home Rule, the party returned to government in 1905 and won a landslide victory in the 1906 general election. Under prime ministers Henry Campbell-Bannerman (1905–1908) and H. H. Asquith (1908–1916), the Liberal Party passed reforms that created a basic welfare state. Although Asquith was the party leader, its dominant figure was David Lloyd George.

Asquith was overwhelmed by his wartime role as prime minister and Lloyd George led a coalition that replaced him in late 1916. However, Asquith remained as Liberal Party leader. The split between Lloyd George's breakaway faction and Asquith's official Liberal faction badly weakened the party. The coalition government of Lloyd George was increasingly dominated by the Conservative Party, which finally ousted him as prime minister in 1922. The subsequent Liberal collapse was quick and catastrophic. With 400 MPs elected in the 1906 election; they had only 40 in 1924. Their share of the popular vote plunged from 49% to 18%. The Labour Party absorbed most of the ex-Liberal voters and then became the Conservatives' main rival.