Our Sinking Welfare State

Real Clear Politics ^ | 6/22/2009 | Robert Samuelson

[Signalman]

WASHINGTON -- Raised in an individualistic culture, Americans dislike the concept of the "welfare state" and do not use the term. But make no mistake, the United States has a welfare state, and its future is precarious. The true significance of General Motors' bankruptcy lies more with this welfare state than with the battered condition of American capitalism.

Broadly speaking, the U.S. welfare system divides into two parts -- the private, run by firms; and the public, provided by government. Both are besieged: private companies by competitive pressures; government by rising debt and taxes. GM exemplified the large corporation as private welfare state. In contracts with the United Auto Workers, GM promised high wages, lifetime employment, generous pensions and comprehensive health insurance. All this is ancient history: new workers get skimpier benefits.

As metaphor, GM's bankruptcy marks the passage of this model. Companies still provide welfare benefits to attract and retain skilled workers. But these shelters against insecurity are growing flimsier. Career jobs remain, but lifetime job guarantees -- whether formal or informal -- are gone. Last year, about 50 percent of male workers aged 50 to 54 had been with the same employer at least 10 years; in 1983, that was 62 percent.

[Man50D]

It's all part of BO's plan Cloward-Piven Strategy

[FreeSouthernAmerican]

As dreary as this sounds and as skeptical as this sounds, this reckoning may be what it takes to get us back to, as a nation, what our forefathers originally intended.