Hayeke On Welfare Policies Of Western Democracies

Along with the industrialization, the labor movement and the emergence of the theories of various schools, social welfare policy was generated and developed gradually. The welfare state system had basically established in the fifties of the 20th century in the western democracies. In the 70s under the background of western countries were in trouble, Hayek used liberalism thought as the theoretical basis, profoundly revealed that the state intervention had caused irreparable consequences, by three perspectives of the market economic order, democracy, and individual, criticized the system of welfare in the western democratic state. At first, Western democracies destroyed the market economic order by adopting the policies of progressive taxation and inflation to promote the welfare policy. Secondly, the union force and compulsory security caused damage to democracy. In the end, Hayek analyzed the social welfare policies that the violation of personal property, personal freedom and personal choice through the housing policy, the agricultural policy and the compulsory education three aspects. Hayek’s welfare thought had its rationality, for western welfare reform had certain positive role. The study of Hayek’s welfare policies had an important significance to build the social welfare in China.