Debates on the Transformation of Welfare State to Competition State

Abstract

Contrary to Classical economists, John M. Keynes, who designed the economic policies to heal the economic downturn that was experienced in 1929, advocates the active role of government in the process of efficient resource distribution, full employment, development, equality in income distribution and in this respect he becomes the person who paves the theoretical background of the welfare state approach. However, Bob Jessop's economically competitive, technologically innovative and contractually flexible Schumpeterian workfare state supersedes the macroeconomic policy oriented Keynesian welfare state that was deadlocked by stagflation problem of 1970's.