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Can the Welfare State Survive?

With the deepening of the world economic crisis and the inevitable increase in unemployment, homelessness and poverty, pressures on welfare agencies world-wide are increasing. Governments are being compelled to review their public spending budgets in an attempt to meet these problems.

Here in Britain the Chancellor, Norman Lamont, has emphasised the Conservatives' commitment:

    "to reduce the proportion of the nation's wealth pre-empted by the public sector . . . Recession inevitably makes that difficult for a while, as output shrinks while rising unemployment pushes up spending. So public spending as a proportion of GDP will rise for a couple of years. But as the economy recovers we need to get it back on a steady downward trend (Daily Telegraph. 24 July)."

He went on to say that the "total level of public expenditure must be fixed on the basis of what is affordable".

Voice from the Back

CALIFORNIAN NIGHTMARE

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