The Commercialization of Social Welfare

Abstract

Movements transforming the private sector of the social market have caused a blurring of the boundary between social and economic markets in the domain of social welfare. Increased federal expenditures for social welfare, a shift from cash benefits to in-kind benefits, and provision of social services to clients above the poverty level have encouraged commercial enterprises to penetrate the social market. This article discusses two movements-the growth of private practice among social welfare professionals and the influx offor-profit organizations into the field-and their implications. In evaluating these changes, the author predicts that social welfare will not soon return to the "liberal" welfare state or develop into a corporate welfare state, but will likely continue in the movement toward increasing privatization, resulting in decentralized production and delivery of services and increased competition among public, nonprofit, and for-profit organizations. The author concludes that the most significant concern associated with the commercialization of social welfare may be its effects upon the charitable and communal ideals of social welfare.