Welafare and investment

[C.Sardoni@xxxxxxxxxxxx]

Gary Mongiovi has raised the important issue of the relationship between

welfare and investment. It is a topic on which Post-Keynesians should
reflect as it is a crucial issue that is related to a necessary and more
general discussion of the market and the relationship between market and
state.
In order to avoid confusion, I think that a useful staring point is drawing
a careful distinction between public spending that is aimed at ?offset? the
contradictions and wastes which are produced by the working of the market
(unemployment, etc.). In my view, this type of expenditure cannot be
regarded as investment. But there are other forms of social spending by the
state that can be considered as investment (e.g. education): social
investment. These expenditures, at least in Europe, have played an
important role.
The debate of the 70?s on the ?fiscal crisis of the state? had dealt with
some of these issues. Should we turn to re-consider that debate?
Claudio Sardoni (C.Sardoni@xxxxxxxxxxxx)