Welfare State Models and Egalitarianism: an Economic and Philosophical analysis

• Jack Doolittle, Economics, University of Delaware

• Hans Holter, Economics, University of Delaware

Taking a comparative approach to politics in America has gained increasing popularity, particularly evident in Bernie Sanders’ 2016 and 2020 presidential runs. Throughout these campaigns, Sanders frequently compared the economic and welfare systems of Nordic countries, primarily Sweden and Denmark, to that of the US, advocating for reforms to emulate the former. The core motivation behind these calls lies in the stark inequality and poverty prevalent in the US, which stands in contrast to its European counterparts. This political argument presents a compelling avenue for research, which is the focus of this paper. Historically, literature on the welfare state has categorized welfare states into three main types: Nordic or Social Democratic, Continental Conservative, and Liberal Market. While this paper will explore the distinctions between these three categories, they are largely taken as given; its primary objective is to investigate the comparative effects on inequality and poverty. To achieve this, a multivariate linear regression analysis will be conducted, utilizing ordinary least squares estimates to model the effect of different welfare state types on inequality and poverty. The ultimate goal of this study is to shed light on the political debates that draw on international comparisons of welfare states, providing valuable insights into the political and economic implications of adopting varying welfare state models.