Since World War Two, maintenance of the welfare state has been seen as an essential part of government in most democratic capitalist countries. Yet over the past two decades the welfare state has been under increasing pressure. On the one hand, rapid social and economic change has left many people vulnerable and dependent on social institutions, while on the other, deteriorating economic prospects have led to calls to cut welfare expenditure.

This book introduces key concepts and arguments in the welfare state debate and questions the views of those who argue for further cutbacks.

It looks at the role, nature and effects of the welfare state in contemporary society; the links between the welfare state and the economy, particularly the problems facing the Australian welfare state in the economic, social and demographic environment of the 1990s; and the success of the Australian welfare state in achieving its aims of improving economic equality and social cohesion.

These issues are considered in the light of the experiences of comparable countries which can offer lessons to Australia. The book confirms that from an international perspective, Australia is not as egalitarian a nation as we might think.

Peter Saunders also examines how the economic rationalists succeeded in convincing people in the 1980s that economic performance was dependent upon diminishing the size of the public sector and social welfare spending. He provides a convincing counter-argument to this view which has been held on both sides of politics even since economic rationalism fell out of favour.

Written by an economist for people who don't necessarily have a background in economics, this book makes an important contribution to the discussion of social issues by one of the best-known figures in the debate. It will be of interest to people in economics, sociology, social work, political science and social and public policy.