Redistributing profit and loss: the new economics of the market and social welfare

A major feature of government public and social policy over the past 25 years has been a shift in emphasis from state to market. With little supporting evidence, the positives of the market have been contrasted with the negatives of state intervention. This article explores the background to this development and suggests that under ‘globalization’ the trend has been for the market increasingly to be freed to be profitable and for the state to bear consequent costs. It argues for the market to be subjected to systematic cost-benefit analysis to see whether a pattern of redistribution of profit (gains) to the market has been accompanied by losses (costs) being laid at the door of the state/public sector. It also considers the additional impact on this of the privatization of welfare. It ends by suggesting that an alternative, rights-based approach to welfare highlighted by new social movements of disabled people and welfare service users based on anti-discrimination, inclusion, participation and accountability may offer a more positive basis for future social policy.