The Welfare State - a Manifestation of Late Capitalism

Abstract

An attempt is made for a conceptualization of the functioning of the welfare-state as known in Scandinavia. A central thesis is that the state-apparatus has a certain degree of freedom to initiate actions within the constraints of a capitalistic economic system. This thesis rejects the idea of the state being neutral and independent as well as the idea of the total subordination of the state-apparatus under capitalist domination. Nor is the thesis accepted that there exists a harmonious co-existence between state-apparatus and monopolies. It is asserted that contradictions existing within a capitalistic society can be solved by state-invervention only through the creation of new contradictions. This is illustrated by means of the functioning of the public sector. It is finally asserted that the state-apparatus in order to maintain total capital has to restrict the actions of individual capitals. The theoretical and meta-theoretical consequences of this thesis are also discussed.