Market failure

Read the case studies on the U.S. (starts page 560) and Germany (starts page 558) relating to welfare. Then, answer the following questions in depth.

1. What does the history of reforms to the German welfare state teach us about the debate over the effects of globalization on social policy? Is the hyper-globalization argument correct, or do national distinctions still matter?

2. What values underlie German’s Christian democratic welfare state, and do these seem to have changed fundamentally in the last decade?

3. What does the U.S. reform effort suggest about which type of social policy is most efficient at reducing poverty?

4. Comparing the U.S. and Germany, how much of a difference is there now between the Christian democratic and liberal welfare state models?