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132-489: Kiddieland started out as a small venture of Arthur Fritz, a local builder and contractor, in 1929 when he purchased six ponies and offered rides to local children. He realized parents would often save a few pennies in order to provide their children entertainment during the Great Depression . Miniature gasoline-powered cars were added a few years later after Fritz learned that they were being given away to children by

264-634: A deflationary spiral started in 1931. Farmers faced a worse outlook; declining crop prices and a Great Plains drought crippled their economic outlook. At its peak, the Great Depression saw nearly 10% of all Great Plains farms change hands despite federal assistance. At first, the decline in the U.S. economy was the factor that triggered economic downturns in most other countries due to a decline in trade, capital movement, and global business confidence. Then, internal weaknesses or strengths in each country made conditions worse or better. For example,

396-418: A silver standard , almost avoided the depression entirely. The connection between leaving the gold standard as a strong predictor of that country's severity of its depression and the length of time of its recovery has been shown to be consistent for dozens of countries, including developing countries . This partly explains why the experience and length of the depression differed between regions and states around

528-697: A Chicago newspaper as a subscription promotion. By the 1930s, Fritz was calling his collection of amusements Kiddieland; the attractions were primarily sized and geared towards younger children. In 1940, the German Carousel , two miniature steam locomotives , the Little Auto Ride, the Roto Whip and the Ferris wheel were added. The Roto Whip and Ferris wheel would remain as rides until the park's closing. The park saw its first major expansion in

660-410: A basic level of well-being through subsidized social services such as healthcare , education , infrastructure, vocational training , and public housing. In a welfare state , the state assumes responsibility for the health, education, infrastructure and welfare of society, providing a range of social services such as those described. Some historians view systems of codified almsgiving , like

792-518: A care provider, this insurance is provided by the state. The basic pension insurance provides, in time old-age pension (includes regular, proportional, early and other variants of old-age pension), disability benefits, widower's and orphan's pension. Pension insurance is applied for at the District Social Security Administration in the applicant's place of permanent residence. They can apply in person or by proxy, on

924-528: A farming revolution where many sheep farms were broken up and sold to become smaller dairy farms. This enabled thousands of new farmers to buy land and develop a new and vigorous industry that has become the backbone of New Zealand's economy to this day. This liberal tradition flourished with increased enfranchisement for indigenous Māori in the 1880s and women. Pensions for the elderly, the poor and war casualties followed, with State-run schools, hospitals and subsidized medical and dental care. By 1960, New Zealand

1056-604: A former privately run bank, bearing no relation to the U.S. government (not to be confused with the Federal Reserve ). Unable to pay out to all of its creditors, the bank failed. Among the 608 American banks that closed in November and December 1930, the Bank of United States accounted for a third of the total $ 550 million deposits lost and, with its closure, bank failures reached a critical mass. In an initial response to

1188-467: A greater reduction in credit. On 5 April 1933, President Roosevelt signed Executive Order 6102 making the private ownership of gold certificates , coins and bullion illegal, reducing the pressure on Federal Reserve gold. British economist John Maynard Keynes argued in The General Theory of Employment, Interest and Money that lower aggregate expenditures in the economy contributed to

1320-638: A massive decline in income and to employment that was well below the average. In such a situation, the economy reached equilibrium at low levels of economic activity and high unemployment. Welfare spending Welfare spending is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specifically to social insurance programs which provide support only to those who have previously contributed (e.g. pensions ), as opposed to social assistance programs which provide support on

1452-600: A modern industrial city handled shortages of money and resources. Often they updated strategies their mothers used when they were growing up in poor families. Cheap foods were used, such as soups, beans and noodles. They purchased the cheapest cuts of meat—sometimes even horse meat—and recycled the Sunday roast into sandwiches and soups. They sewed and patched clothing, traded with their neighbors for outgrown items, and made do with colder homes. New furniture and appliances were postponed until better days. Many women also worked outside

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1584-402: A monetary contraction first-hand were forced to join the deflationary policy since higher interest rates in countries that performed a deflationary policy led to a gold outflow in countries with lower interest rates. Under the gold standard's price–specie flow mechanism , countries that lost gold but nevertheless wanted to maintain the gold standard had to permit their money supply to decrease and

1716-582: A range of services, including universal healthcare, free education, and a comprehensive system of social security. It also provides financial assistance to citizens in need through programs such as unemployment benefits, housing assistance, and social assistance for low-income families. In Philippines, social welfare is mainly provided by the Department of Social Welfare and Development (DSWD). DSWD provides social welfare such as cash assistance (ayuda) and physical goods. The Pantawid Pamilyang Pilipino Program

1848-627: A range of social services and financial assistance to its citizens. The Estonian welfare state is a liberal welfare state, which means that it provides a minimal safety net for citizens in need and places a greater emphasis on individual responsibility and self-sufficiency. The Estonian welfare state provides a range of services, including universal healthcare, free education, and a comprehensive system of social security. It also provides financial assistance to citizens in need through programs such as unemployment benefits, housing assistance, and social assistance for low-income families. The Estonian welfare state

1980-567: A serious issue in the 1930s. Support for increasing welfare programs during the depression included a focus on women in the family. The Conseil Supérieur de la Natalité campaigned for provisions enacted in the Code de la Famille (1939) that increased state assistance to families with children and required employers to protect the jobs of fathers, even if they were immigrants. In rural and small-town areas, women expanded their operation of vegetable gardens to include as much food production as possible. In

2112-509: A significant effect on social protection policies. Prior to the 1980s, most Latin American countries focused on social insurance policies involving formal sector workers, assuming that the informal sector would disappear with economic development . The economic crisis of the 1980s and the liberalization of the labor market led to a growing informal sector and a rapid increase in poverty and inequality. Latin American countries did not have

2244-480: A small cadre of Labour, but the vast majority of Labour leaders denounced MacDonald as a traitor for leading the new government. Britain went off the gold standard , and suffered relatively less than other major countries in the Great Depression. In the 1931 British election, the Labour Party was virtually destroyed, leaving MacDonald as prime minister for a largely Conservative coalition. In most countries of

2376-453: A so-called widow's / widower's pension. Provided to widowed individuals from the Czech pension system, its aim is to compensate households for losing income that they would in this situation be lacking. The widowed individual is entitled to a pension from a deceased person who has received an old-age or disability pension or has fulfilled the statutory condition on the required insurance period at

2508-713: A standstill agreement froze Germany's foreign liabilities for six months. Germany received emergency funding from private banks in New York as well as the Bank of International Settlements and the Bank of England. The funding only slowed the process. Industrial failures began in Germany, a major bank closed in July and a two-day holiday for all German banks was declared. Business failures were more frequent in July, and spread to Romania and Hungary. The crisis continued to get worse in Germany, bringing political upheaval that finally led to

2640-564: A strong social security system to provide support to citizens in need. It also places a strong emphasis on promoting social cohesion and reducing income inequality, and it has a relatively high level of social spending compared to other countries. Solidarity is a strong value of the French Social Protection system. The first article of the French Code of Social Security describes the principle of solidarity. Solidarity

2772-651: A system known as the Nordic model . Esping-Andersen classified the most developed welfare state systems into three categories; Social Democratic, Conservative, and Liberal. A report published by the ILO in 2014 estimated only 27% of the world population has access to comprehensive social security. The World Bank 's 2019 World Development Report argues that the traditional payroll-based model of many kinds of social insurance are "increasingly challenged by working arrangements outside standard employment contracts". Welfare can take

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2904-521: A variety of forms, such as monetary payments, subsidies and vouchers , or housing assistance. Welfare systems differ from country to country, but welfare is commonly provided to individuals who are unemployed , those with illness or disability , the elderly , those with dependent children, and veterans . Programs may have a variety of conditions for a person to receive welfare: Not all citizens use their social rights. Selective social rights have higher non-take-up rate than universal social rights due to

3036-658: Is a consensus that the Federal Reserve System should have cut short the process of monetary deflation and banking collapse, by expanding the money supply and acting as lender of last resort . If they had done this, the economic downturn would have been far less severe and much shorter. Modern mainstream economists see the reasons in Insufficient spending, the money supply reduction, and debt on margin led to falling prices and further bankruptcies ( Irving Fisher 's debt deflation). The monetarist explanation

3168-399: Is a distinction between disability pension for individuals with first, second and third degree disability. The amount of the pension depends on the rate of decline of the person's ability to work, with the categories being divided between the first degree (a decrease of 35–49%), the second degree (a decrease of 50–69%), and the third degree (a decrease of 70% and above). Furthermore, there is

3300-592: Is commonly comprehended in relations of similar work, shared responsibility and common risks. Existing solidarities in France caused the expansion of health and social security. The welfare state has a long tradition in Germany dating to the Industrial Revolution . Due to the pressure of the workers' movement in the late 19th century, Reichskanzler Otto von Bismarck introduced the first rudimentary state social insurance scheme . Under Adolf Hitler ,

3432-409: Is funded through a mix of taxation and public spending, and it relies on a strong social security system to provide support to citizens in need. However, compared to other welfare states, it has relatively low levels of social spending and may rely more on private sector solutions to address social welfare issues. The Finnish Nordic model welfare state is based on the principles of social equality and

3564-428: Is intended for gainfully employed individuals who, in cases of short-term social events, are provided with health insurance benefits. These are provided through financial benefits. Sickness insurance participants are employees and self-employed individuals. Employees are compulsorily covered by sickness insurance, unlike the self-employed, whose sickness insurance is voluntary (and there is no penalisation for opting out of

3696-413: Is now followed by (usually much lower) Arbeitslosengeld II (ALG II) or Sozialhilfe , which is independent of previous employment ( Hartz IV concept). As of 2022 , under ALG II, single adults receive up to €449 per month plus the cost of 'adequate' housing. ALG II can also be paid partially to employed persons to supplement a low work income. The Directive Principles of India , enshrined in part IV of

3828-544: Is often referred to instead of social security, encompassing a broader set of means, such as labour market intervention and local community-based programs, to alleviate poverty and provide security against things like unemployment. Prior to 1900 in Australia, charitable assistance from benevolent societies, sometimes with financial contributions from the authorities, was the primary means of relief for people not able to support themselves. The 1890s economic depression and

3960-751: Is one of the most well known social welfare programs by the DSWD where cash grants are given to parents and guardians in poverty to help their children continue schooling. This has assisted parents and guardians in poverty by helping them buy food and school supplies for their dependents. The Sustainable Livelihood Program (SLP) is also another social welfare program where the DSWD provides education, cash grants, or items such as vehicles and food stalls to individuals and communities to aid in their livelihoods. SLP grants are given to individuals such as street food vendors and organisations such as farmers cooperatives. DSWD also provides medical assistance for those who cannot afford

4092-487: Is outlined in a series of social policies , as is the tradition in Europe. Their goal is primarily preventing, but also mitigating social situations individuals may find themselves in through their lives. The social welfare is provided through social (including pension) insurance, sick insurance (not to be confused with health insurance ), public policy related to unemployment and low income benefits, which are financed through

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4224-415: Is part of social insurance, in addition to sickness insurance and serves as a contribution to the state employment policy. It is a premium for old age retirement, disability retirement or benefits in the event of the death of the primary provider in a household. Participation in pension insurance is mandatory for economically active individuals. For those on various forms of benefits, or currently registered as

4356-493: Is supported by the contrast in how the crisis progressed in, e.g., Britain, Argentina and Brazil, all of which devalued their currencies early and returned to normal patterns of growth relatively rapidly and countries which stuck to the gold standard , such as France or Belgium. Frantic attempts by individual countries to shore up their economies through protectionist policies – such as the 1930 U.S. Smoot–Hawley Tariff Act and retaliatory tariffs in other countries – exacerbated

4488-476: Is therefore compulsory for all self-employed individuals, employees and employers operating in the Czech Republic and gets deducted from a salary in a similar manner to taxes. This insurance serves to finance unemployment support, disability benefits and covers a part of an employer's salary in cases of long-term illness that obstructs them from participating in the workforce. The sickness insurance system

4620-539: The 1932 election , Hoover was defeated by Franklin D. Roosevelt , who from 1933 pursued a series of " New Deal " policies and programs to provide relief and create jobs, including the Civilian Conservation Corps , Federal Emergency Relief Administration , Tennessee Valley Authority , and Works Progress Administration . Historians disagree on the effects of the New Deal, with some claiming that

4752-682: The Aadhaar system to distribute welfare measures in India. Some of the social programmes undertaken by the government are: As of 2023, the government's expenditure on social programme and welfare was approximately ₹ 21.3 lakh crore (US$ 260 billion), which was 8.3% of gross domestic product (GDP). In 2020, the expenditure was ₹ 17.1 lakh crore (equivalent to ₹ 20 trillion or US$ 240 billion in 2023), accounting for 7.7% of GDP. The Israeli government spend 86 billion NIS ($ 22.8 billion) in 2014. They are administered by

4884-628: The Attlee government (1944–1951). In the countries of western Europe, Australia, and New Zealand, social welfare is mainly provided by the government out of the national tax revenues , and to a lesser extent by non-government organizations (NGOs), and charities (social and religious). A right to social security and an adequate standard of living is asserted in Articles 22 and 25 of the Universal Declaration of Human Rights . In

5016-755: The Biblical Maaser Ani , or poor- tithe , as well as Biblical practices, such as permitting the poor to glean the corners of a field and harvest during the Shmita (Sabbatical year). There is relatively little statistical data on transfer payments before the High Middle Ages . In the medieval period and until the Industrial Revolution , the function of welfare payments in Europe was achieved through private giving or charity, through numerous confraternities and activities of different religious orders . Early welfare programs in Europe included

5148-530: The English Poor Law of 1601 , which gave parishes the responsibility for providing welfare payments to the poor. This system was substantially modified by the 19th-century Poor Law Amendment Act , which introduced the system of workhouses . It was predominantly in the late 19th and early 20th centuries that an organized system of state welfare provision was introduced in many countries. Otto von Bismarck , Chancellor of Germany, introduced one of

5280-510: The Great Depression , most social services were provided by religious charities and other private groups. Changing government policy between the 1930s and 1960s saw the emergence of a welfare state, similar to many Western European countries. Most programs from that era are still in use, although many were scaled back during the 1990s as government priorities shifted towards reducing debt and deficits . Social welfare in Czech Republic

5412-703: The Indian Constitution , reflect that India is a welfare state. The National Food Security Act, 2013 aims to guarantee right to food to all citizens. The welfare system was fragmented until the passing of The Code on Social Security, 2020 , which standardised most of the programmes. The Government of India 's social programmes and welfare expenditures are a substantial portion of the official budget, and state and local governments play roles in developing and implementing social security policies. Additional welfare measure systems are also uniquely operated by various state governments. The government uses

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5544-461: The Ministry of Social Affairs and Social Services , and by Israel's national social security agency, Bituah Leumi . Social security schemes include pensions for the elderly and the disabled, unemployment benefits, and income support for low income households. All residents of Israel must pay insurance contributions to qualify for welfare. The Italian welfare state's foundations were laid along

5676-634: The National Socialist Program stated "We demand an expansion on a large scale of old age welfare." Today, the social protection of all its citizens is considered a central pillar of German national policy. 27.6 percent of Germany's GDP is channeled into an all-embracing system of health, pension, accident , longterm care and unemployment insurance , compared to 16.2 percent in the US. In addition, there are tax-financed services such as child benefits ( Kindergeld , beginning at €192 per month for

5808-582: The New York Bank of United States – which produced panic and widespread runs on local banks, and the Federal Reserve sat idly by while banks collapsed. Friedman and Schwartz argued that, if the Fed had provided emergency lending to these key banks, or simply bought government bonds on the open market to provide liquidity and increase the quantity of money after the key banks fell, all the rest of

5940-806: The Roman Empire , the first emperor Augustus provided the Cura Annonae or grain dole for citizens who could not afford to buy food every month. Social welfare was enlarged by the Emperor Trajan . Trajan's program brought acclaim from many, including Pliny the Younger . Other provisions for the poor were introduced during the history of Ancient Rome, such as the Alimenta . The Song dynasty government (960 CE) supported multiple programs which could be classified as social welfare, including

6072-512: The Umayyad and Abbasid caliphates, though the zakat system was frequently inefficient and corrupt; Islamic jurists often instructed Muslims to distribute money to the needy directly instead to maximize its impact. Likewise, in Jewish tradition, charity (represented by tzedakah ) is a matter of religious obligation rather than benevolence. Contemporary charity is regarded as a continuation of

6204-539: The coming to power of Hitler's Nazi regime in January 1933. The world financial crisis now began to overwhelm Britain; investors around the world started withdrawing their gold from London at the rate of £2.5 million per day. Credits of £25 million each from the Bank of France and the Federal Reserve Bank of New York and an issue of £15 million fiduciary note slowed, but did not reverse,

6336-613: The zakat policy of the seventh century (634 CE) Rashidun caliph Umar , as early examples of universal government welfare. The first welfare state was Imperial Germany (1871–1918), where the Bismarck government introduced social security in 1889. In the early 20th century, the United Kingdom introduced social security around 1913, and adopted the welfare state with the National Insurance Act 1946 , during

6468-447: The 1937 recession that interrupted it). The common view among most economists is that Roosevelt's New Deal policies either caused or accelerated the recovery, although his policies were never aggressive enough to bring the economy completely out of recession. Some economists have also called attention to the positive effects from expectations of reflation and rising nominal interest rates that Roosevelt's words and actions portended. It

6600-474: The 1950s with the addition of the Little Dipper and the merry-go-round . Fritz's adult children also became more involved in the park at this time. The 1960s saw bumper cars replace the original pony ride, as well as the unexpected death of Fritz in 1967. The park transferred ownership in 1977, as three of Fritz's grandchildren took over the park and its operation. The park continued its expansion over

6732-593: The American usage) and not to healthcare and education spending (as in the European usage). The Canadian social safety net covers a broad spectrum of programs, and because Canada is a federation , many are run by the provinces . Canada has a wide range of government transfer payments to individuals, which totaled $ 145   billion in 2006. Only social programs that direct funds to individuals are included in that cost; programs such as medicare and public education are additional costs. Generally speaking, before

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6864-813: The British crisis. The financial crisis now caused a major political crisis in Britain in August 1931. With deficits mounting, the bankers demanded a balanced budget; the divided cabinet of Prime Minister Ramsay MacDonald's Labour government agreed; it proposed to raise taxes, cut spending, and most controversially, to cut unemployment benefits 20%. The attack on welfare was unacceptable to the Labour movement. MacDonald wanted to resign, but King George V insisted he remain and form an all-party coalition " National Government ". The Conservative and Liberals parties signed on, along with

6996-530: The Depression. Businessmen ignored the mounting national debt and heavy new taxes, redoubling their efforts for greater output to take advantage of generous government contracts. During World War I many countries suspended their gold standard in varying ways. There was high inflation from WWI, and in the 1920s in the Weimar Republic , Austria , and throughout Europe. In the late 1920s there

7128-521: The Dow returning to 294 (pre-depression levels) in April 1930, before steadily declining for years, to a low of 41 in 1932. At the beginning, governments and businesses spent more in the first half of 1930 than in the corresponding period of the previous year. On the other hand, consumers, many of whom suffered severe losses in the stock market the previous year, cut expenditures by 10%. In addition, beginning in

7260-489: The Federal Reserve did not act to limit the decline of the money supply was the gold standard . At that time, the amount of credit the Federal Reserve could issue was limited by the Federal Reserve Act , which required 40% gold backing of Federal Reserve Notes issued. By the late 1920s, the Federal Reserve had almost hit the limit of allowable credit that could be backed by the gold in its possession. This credit

7392-442: The Great Depression is right, or the traditional Keynesian explanation that a fall in autonomous spending, particularly investment, is the primary explanation for the onset of the Great Depression. Today there is also significant academic support for the debt deflation theory and the expectations hypothesis that – building on the monetary explanation of Milton Friedman and Anna Schwartz – add non-monetary explanations. There

7524-642: The Great Depression. According to the U.S. Senate website, the Smoot–Hawley Tariff Act is among the most catastrophic acts in congressional history. Many economists have argued that the sharp decline in international trade after 1930 helped to worsen the depression, especially for countries significantly dependent on foreign trade. Most historians and economists blame the Act for worsening the depression by seriously reducing international trade and causing retaliatory tariffs in other countries. While foreign trade

7656-521: The Invalid and Old-Aged Pensions Act 1908. A national invalid disability pension was started in 1910, and a national maternity allowance was introduced in 1912. During the Second World War, Australia under a labor government created a welfare state by enacting national schemes for: child endowment in 1941 (superseding the 1927 New South Wales scheme); a widows' pension in 1942 (superseding

7788-481: The New Deal prolonged the Great Depression, as they argue that National Industrial Recovery Act of 1933 and National Labor Relations Act of 1935 restricted competition and established price fixing. John Maynard Keynes did not think that the New Deal under Roosevelt single-handedly ended the Great Depression: "It is, it seems, politically impossible for a capitalistic democracy to organize expenditure on

7920-579: The New South Wales 1926 scheme); a wife's allowance in 1943; additional allowances for the children of pensioners in 1943; and unemployment, sickness, and special benefits in 1945 (superseding the Queensland 1923 scheme). Canada has a welfare state in the European tradition; however, it is not referred to as "welfare", but rather as "social programs". In Canada, "welfare" usually refers specifically to direct payments to poor individuals (as in

8052-544: The U.K. economy, which experienced an economic downturn throughout most of the late 1920s, was less severely impacted by the shock of the depression than the U.S. By contrast, the German economy saw a similar decline in industrial output as that observed in the U.S. Some economic historians attribute the differences in the rates of recovery and relative severity of the economic decline to whether particular countries had been able to effectively devaluate their currencies or not. This

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8184-490: The U.S. unemployment rate down below 10%. World War II had a dramatic effect on many parts of the American economy. Government-financed capital spending accounted for only 5% of the annual U.S. investment in industrial capital in 1940; by 1943, the government accounted for 67% of U.S. capital investment. The massive war spending doubled economic growth rates, either masking the effects of the Depression or essentially ending

8316-685: The United States, agricultural organizations sponsored programs to teach housewives how to optimize their gardens and to raise poultry for meat and eggs. Rural women made feed sack dresses and other items for themselves and their families and homes from feed sacks. In American cities, African American women quiltmakers enlarged their activities, promoted collaboration, and trained neophytes. Quilts were created for practical use from various inexpensive materials and increased social interaction for women and promoted camaraderie and personal fulfillment. Oral history provides evidence for how housewives in

8448-543: The United States, remained on the gold standard into 1932 or 1933, while a few countries in the so-called "gold bloc", led by France and including Poland, Belgium and Switzerland, stayed on the standard until 1935–36. According to later analysis, the earliness with which a country left the gold standard reliably predicted its economic recovery. For example, The UK and Scandinavia, which left the gold standard in 1931, recovered much earlier than France and Belgium, which remained on gold much longer. Countries such as China, which had

8580-638: The Wall Street crash, after which the slide continued for three years, which was accompanied by a loss of confidence in the financial system. By 1933, the U.S. unemployment rate had risen to 25 percent, about one-third of farmers had lost their land, and about half of the country's 25,000 banks had gone out of business. Many people, unable to pay mortgages or rent, became homeless and relied on begging or charities to feed themselves. The U.S. federal government initially did little to help. President Herbert Hoover , like many of his fellow Republicans , believed in

8712-460: The banks would not have fallen after the large ones did, and the money supply would not have fallen as far and as fast as it did. With significantly less money to go around, businesses could not get new loans and could not even get their old loans renewed, forcing many to stop investing. This interpretation blames the Federal Reserve for inaction, especially the New York branch . One reason why

8844-445: The basis of a notarized power of attorney. The amount of the pension consists of two component – the basic acreage and the percentage acreage. Another form of pension is the disability pension. This is provided to individuals that are unable to participate in the workforce to the same degree as their able-bodied counterparts, due to their disability contributing to the decline of their ability to work (be it partially or entirely). There

8976-419: The basis of need alone (e.g. most disability benefits). The International Labour Organization defines social security as covering support for those in old age , support for the maintenance of children , medical treatment , parental and sick leave , unemployment and disability benefits , and support for sufferers of occupational injury . More broadly, welfare may also encompass efforts to provide

9108-573: The beginning of the Depression. The Depression was preceded by a period of industrial growth and social development known as the " Roaring Twenties ". Much of the profit generated by the boom was invested in speculation , such as on the stock market , which resulted in growing wealth inequality . Banks were subject to minimal regulation under laissez-faire economic policies, resulting in loose lending and widespread debt. By 1929, declining spending had led to reductions in manufacturing output and rising unemployment . Share values continued to rise until

9240-465: The behavior of housewives. The common view among economic historians is that the Great Depression ended with the advent of World War II . Many economists believe that government spending on the war caused or at least accelerated recovery from the Great Depression, though some consider that it did not play a very large role in the recovery, though it did help in reducing unemployment. The rearmament policies leading up to World War II helped stimulate

9372-428: The belief that all citizens should have access to the same basic rights and opportunities. It provides a range of services, including universal healthcare, free education, and a comprehensive system of social security. It also provides financial assistance to citizens in need through programs such as unemployment benefits, housing assistance, and social assistance for low-income families. The Finnish welfare state relies on

9504-401: The birth of a disabled child, when this period is extended even more. The beginning of maternity leave is usually 6 weeks before expected due date, and after maternity leave, it is possible to request further parental leave, which is optional and can be performed by either parent, regardless of gender. Parental leave lasts up to four years, depending on individual preferences. Pension insurance

9636-462: The collapse in global trade, contributing to the depression. By 1933, the economic decline pushed world trade to one third of its level compared to four years earlier. While the precise causes for the occurrence of the Great depression are disputed and can be traced to both global and national phenomena, its immediate origins are most conveniently examined in the context of the U.S. economy, from which

9768-499: The collection and distribution of public welfare. The seventh century caliph Umar implemented a form of zakat , one of the Five Pillars of Islam , as a codified universal social security tax. Traditionally estimated at 2.5% of an individual's assets, government zakat funds were distributed to various groups of Muslims, including impoverished people and those in severe debt. The collection of zakat increased during

9900-524: The complexity of the information and the Bureaucracy. Sometimes people need the help of other people to mediate their rights. In developing countries, formal social security arrangements are often absent for the vast majority of the working population, in part due to reliance on the informal economy . Additionally, the state's capacity to reach people may be limited because of its limited infrastructure and resources. In this context, social protection

10032-475: The crash was a mere symptom of more general economic trends of the time, which had already been underway in the late 1920s. A contrasting set of views, which rose to prominence in the later part of the 20th century, ascribes a more prominent role to failures of monetary policy . According to those authors, while general economic trends can explain the emergence of the downturn, they fail to account for its severity and longevity; they argue that these were caused by

10164-569: The crisis, the U.S. Congress passed the Smoot–Hawley Tariff Act on 17 June 1930. The Act was ostensibly aimed at protecting the American economy from foreign competition by imposing high tariffs on foreign imports. The consensus view among economists and economic historians (including Keynesians , Monetarists and Austrian economists ) is that the passage of the Smoot–Hawley Tariff had, in fact, achieved an opposite effect to what

10296-568: The date of death. The amount of the assessment is 10% of the average wage and the amount of the percentage assessment is 50% of the percentage of the old-age or disability pension to which the deceased was entitled at the time of their death. Danish welfare is handled by the state through a series of policies (and the like) that seeks to provide welfare services to citizens, hence the term welfare state. This refers not only to social benefits, but also tax-funded education, public child care, medical care, etc. A number of these services are not provided by

10428-633: The decade. The Depression had devastating economic effects on both wealthy and poor countries: all experienced drops in personal income , prices ( deflation ), tax revenues, and profits. International trade fell by more than 50%, and unemployment in some countries rose as high as 33%. Cities around the world , especially those dependent on heavy industry , were heavily affected. Construction virtually halted in many countries, and farming communities and rural areas suffered as crop prices fell by up to 60%. Faced with plummeting demand and few job alternatives, areas dependent on primary sector industries suffered

10560-408: The depression. Not all governments enforced the same measures of protectionism. Some countries raised tariffs drastically and enforced severe restrictions on foreign exchange transactions, while other countries reduced "trade and exchange restrictions only marginally": The gold standard was the primary transmission mechanism of the Great Depression. Even countries that did not face bank failures and

10692-435: The domestic price level to decline ( deflation ). There is also consensus that protectionist policies, and primarily the passage of the Smoot–Hawley Tariff Act , helped to exacerbate, or even cause the Great Depression. Some economic studies have indicated that the rigidities of the gold standard not only spread the downturn worldwide, but also suspended gold convertibility (devaluing the currency in gold terms) that did

10824-402: The drop in demand. Monetarists believe that the Great Depression started as an ordinary recession, but the shrinking of the money supply greatly exacerbated the economic situation, causing a recession to descend into the Great Depression. Economists and economic historians are almost evenly split as to whether the traditional monetary explanation that monetary forces were the primary cause of

10956-427: The economies of Europe in 1937–1939. By 1937, unemployment in Britain had fallen to 1.5 million. The mobilization of manpower following the outbreak of war in 1939 ended unemployment. The American mobilization for World War II at the end of 1941 moved approximately ten million people out of the civilian labor force and into the war. This finally eliminated the last effects from the Great Depression and brought

11088-576: The end of the month. A large sell-off of stocks began in mid-October. Finally, on 24 October, Black Thursday , the American stock market crashed 11% at the opening bell. Actions to stabilize the market failed, and on 28 October, Black Monday, the market crashed another 12%. The panic peaked the next day on Black Tuesday, when the market saw another 11% drop. Thousands of investors were ruined, and billions of dollars had been lost; many stocks could not be sold at any price. The market recovered 12% on Wednesday but by then significant damage had been done. Though

11220-500: The explanations of the Keynesians and monetarists. The consensus among demand-driven theories is that a large-scale loss of confidence led to a sudden reduction in consumption and investment spending. Once panic and deflation set in, many people believed they could avoid further losses by keeping clear of the markets. Holding money became profitable as prices dropped lower and a given amount of money bought ever more goods, exacerbating

11352-422: The extreme inequality levels and the mass scale of poverty; locating a financial basis for programs; and deciding on exit strategies or on the long-term establishment of programs. The economic crisis of the 1980s led to a shift in social policies, as understandings of poverty and social programs evolved (24). New, mostly short-term programs emerged. These include: New Zealand is often regarded as having one of

11484-503: The few women in the labor force, layoffs were less common in the white-collar jobs and they were typically found in light manufacturing work. However, there was a widespread demand to limit families to one paid job, so that wives might lose employment if their husband was employed. Across Britain, there was a tendency for married women to join the labor force, competing for part-time jobs especially. In France, very slow population growth, especially in comparison to Germany continued to be

11616-425: The first and second child, €198 for the third and €223 for each child thereafter, until they attain 25 years or receive their first professional qualification), and basic provisions for those unable to work or anyone with an income below the poverty line. Since 2005, reception of full unemployment pay (60–67% of the previous net salary) has been restricted to 12 months in general and 18 months for those over 55. This

11748-403: The first comprehensive welfare systems in the world. During the 1890s, a Liberal government adopted many social programmes to help the poor who had suffered from a long economic depression in the 1880s. One of the most far reaching was the passing of tax legislation that made it difficult for wealthy sheep farmers to hold onto their large land holdings. This and the invention of refrigeration led to

11880-505: The first week of June, 540 million in the second, and 150 million in two days, 19–20 June. Collapse was at hand. U.S. President Herbert Hoover called for a moratorium on payment of war reparations . This angered Paris, which depended on a steady flow of German payments, but it slowed the crisis down, and the moratorium was agreed to in July 1931. An International conference in London later in July produced no agreements but on 19 August

12012-598: The first welfare systems for the working classes. In Great Britain the Liberal government of Henry Campbell-Bannerman and David Lloyd George introduced the National Insurance system in 1911, a system later expanded by Clement Attlee . Modern welfare states include Germany, France, the Netherlands, as well as the Nordic countries , such as Iceland, Sweden, Norway, Denmark, and Finland which employ

12144-493: The government budget, and health insurance, which is financed through an array of insurance companies. Therefore, the social welfare program is usually separated into three categories: health insurance, social insurance and social benefits support. Social insurance is a type of statutory insurance that provides citizens for a future unforeseen social event, such as unemployment or disability that would prevent an individual from working, but also planned retirement. Social insurance

12276-606: The government tried to reshape private household consumption under the Four-Year Plan of 1936 to achieve German economic self-sufficiency. The Nazi women's organizations, other propaganda agencies and the authorities all attempted to shape such consumption as economic self-sufficiency was needed to prepare for and to sustain the coming war. The organizations, propaganda agencies and authorities employed slogans that called up traditional values of thrift and healthy living. However, these efforts were only partly successful in changing

12408-519: The home, or took boarders, did laundry for trade or cash, and did sewing for neighbors in exchange for something they could offer. Extended families used mutual aid—extra food, spare rooms, repair-work, cash loans—to help cousins and in-laws. In Japan, official government policy was deflationary and the opposite of Keynesian spending. Consequently, the government launched a campaign across the country to induce households to reduce their consumption, focusing attention on spending by housewives. In Germany,

12540-462: The ill or otherwise disabled and for the old, has long been provided in Japan by both the government and private companies. Beginning in the 1920s, the government enacted a series of welfare programs, based mainly on European models, to provide medical care and financial support. During the postwar period, a comprehensive system of social security was gradually established. The 1980s marked a change in

12672-527: The initial crisis spread to the rest of the world. In the aftermath of World War I , the Roaring Twenties brought considerable wealth to the United States and Western Europe. Initially, the year 1929 dawned with good economic prospects: despite a minor crash on 25 March 1929, the market seemed to gradually improve through September. Stock prices began to slump in September, and were volatile at

12804-598: The institutions and funds to properly handle such a crisis, both due to the structure of the social security system, and to the previously implemented structural adjustment policies (SAPs) that had decreased the size of the state. New Welfare programs have integrated the multidimensional, social risk management , and capabilities approaches into poverty alleviation. They focus on income transfers and service provisions while aiming to alleviate both long- and short-term poverty through, among other things, education, health, security, and housing. Unlike previous programs that targeted

12936-467: The insurance). It is calculated through a series of reductions of an assessment base. Employees' sickness insurance provides 4 types of sickness benefits: benefits for caring for a family member, pregnancy and maternity allowance, maternity allowance. It is standard to go on paid maternity leave in the Czech Republic, which ordinarily lasts 28 weeks. This period is prolonged to 37 weeks in the case of twins. Furthermore, there are special circumstances, such as

13068-563: The lack of an adequate response to the crises of liquidity that followed the initial economic shock of 1929 and the subsequent bank failures accompanied by a general collapse of the financial markets. After the Wall Street Crash of 1929 , when the Dow Jones Industrial Average dropped from 381 to 198 over the course of two months, optimism persisted for some time. The stock market rose in early 1930, with

13200-472: The lines of the corporatist -conservative model, or of its Mediterranean variant. Later, in the 1960s and 1970s, increases in public spending and a major focus on universality brought it on the same path as social-democratic systems. In 1978, a universalistic welfare model was introduced in Italy, offering a number of universal and free services such as a National Health Fund. Social welfare, assistance for

13332-521: The market entered a period of recovery from 14 November until 17 April 1930, the general situation had been a prolonged slump. From 17 April 1930 until 8 July 1932, the market continued to lose 89% of its value. Despite the crash, the worst of the crisis did not reverberate around the world until after 1929. The crisis hit panic levels again in December 1930, with a bank run on the Bank of United States ,

13464-414: The mid-1930s, a severe drought ravaged the agricultural heartland of the U.S. Interest rates dropped to low levels by mid-1930, but expected deflation and the continuing reluctance of people to borrow meant that consumer spending and investment remained low. By May 1930, automobile sales declined to below the levels of 1928. Prices, in general, began to decline, although wages held steady in 1930. Then

13596-423: The monetary base and by not injecting liquidity into the banking system to prevent it from crumbling, the Federal Reserve passively watched the transformation of a normal recession into the Great Depression. Friedman and Schwartz argued that the downward turn in the economy, starting with the stock market crash, would merely have been an ordinary recession if the Federal Reserve had taken aggressive action. This view

13728-502: The most to make recovery possible. Every major currency left the gold standard during the Great Depression. The UK was the first to do so. Facing speculative attacks on the pound and depleting gold reserves , in September 1931 the Bank of England ceased exchanging pound notes for gold and the pound was floated on foreign exchange markets. Japan and the Scandinavian countries followed in 1931. Other countries, such as Italy and

13860-427: The most. The outbreak of World War II in 1939 ended the Depression, as it stimulated factory production, providing jobs for women as militaries absorbed large numbers of young, unemployed men. The precise causes for the Great Depression are disputed. One set of historians, for example, focuses on non-monetary economic causes. Among these, some regard the Wall Street crash itself as the main cause; others consider that

13992-582: The need to balance the national budget and was unwilling to implement expensive welfare spending . In 1930, Hoover signed the Smoot–Hawley Tariff Act , which taxed imports with the intention of encouraging buyers to purchase American products, which worsened the Depression because foreign governments retaliated with tariffs on American exports. In 1932, Hoover established the Reconstruction Finance Corporation , which offered loans to businesses and support to local governments. In

14124-436: The next several decades and installed several major attractions, including a Log flume , a swinging pirate ship , a 40-foot (12 m) long water coaster , and numerous other attractions. A dispute developed between Shirley and Glenn Rynes, who owned the land that Kiddieland occupied, and Ronald Rynes, Jr. and Cathy and Tom Norini, who owned the amusement park itself. The landowners sued the park owners in 2004, claiming that

14256-464: The park had an improper insurance policy and that fireworks were prohibited in the lease. The case was thrown out in a Cook County court and later in an appeals court. The landowners declined to extend the lease on the land in early 2009. In late June 2010, it was announced that Kiddieland would be demolished, nine months after the park closed to the public. A Costco store now occupies the land. Great Depression The Great Depression

14388-483: The physical volume of exports fall, but also the prices fell by about 1 ⁄ 3 as written. Hardest hit were farm commodities such as wheat, cotton, tobacco, and lumber. Governments around the world took various steps into spending less money on foreign goods such as: "imposing tariffs, import quotas, and exchange controls". These restrictions triggered much tension among countries that had large amounts of bilateral trade, causing major export-import reductions during

14520-480: The policies prolonged the Depression instead of shortening it. Between 1929 and 1932, worldwide gross domestic product (GDP) fell by an estimated 15%; in the U.S., the Depression resulted in a 30% contraction in GDP. Recovery varied greatly around the world. Some economies, such as the U.S., Germany and Japan started to recover by the mid-1930s; others, like France, did not return to pre-shock growth rates until later in

14652-406: The political situation in Europe. In their book, A Monetary History of the United States , Milton Friedman and Anna J. Schwartz also attributed the recovery to monetary factors, and contended that it was much slowed by poor management of money by the Federal Reserve System . Chairman of the Federal Reserve (2006–2014) Ben Bernanke agreed that monetary factors played important roles both in

14784-536: The poor and slaves. From the 14th century onward, the governments of the Italian city-states began to partner with the church to provide welfare and education to the lower classes. In the 18th Century, according to one study, the Qing Dynasty had “the most elaborate relief system in world history, based on state and local granaries that were used in times of shortage to stabilize food prices and provide relief to

14916-523: The rise of the trade unions and the Labor parties during this period led to a movement for welfare reform. In 1900, the states of New South Wales and Victoria enacted legislation introducing non-contributory pensions for those aged 65 and over. Queensland legislated a similar system in 1907 before the Australian labor Commonwealth government led by Andrew Fisher introduced a national aged pension under

15048-434: The scale necessary to make the grand experiments which would prove my case—except in war conditions." According to Christina Romer , the money supply growth caused by huge international gold inflows was a crucial source of the recovery of the United States economy, and that the economy showed little sign of self-correction. The gold inflows were partly due to devaluation of the U.S. dollar and partly due to deterioration of

15180-411: The state directly, but administered by municipalities, regions or private providers through outsourcing. This sometimes gives a source of tension between the state and municipalities, as there is not always consistency between the promises of welfare provided by the state (i.e. parliament) and local perception of what it would cost to fulfill these promises. Estonia does have a welfare state that provides

15312-466: The state hospitals, low-interest loans for peasants, state orphanages, free pharmacies for the poor, filled state granaries, fire stations and libraries in the large cities, retirement homes, public clinics, and paupers' graveyards. According to economist Robert Henry Nelson , "the medieval Roman Catholic Church operated a far-reaching and comprehensive welfare system for the poor   ...". Ancient Greek city-states provided free medical services for

15444-405: The structure of Latin American social protection programs. Social protection embraces three major areas: social insurance, financed by workers and employers; social assistance to the population's poorest, financed by the state; and labor market regulations to protect worker rights. Although diverse, recent Latin American social policy has tended to concentrate on social assistance. The 1980s, had

15576-687: The urban and rural poor.” This system, however, was weakened after imperialism entered China following the 1840 Opium War and the Taiping Rebellion (1850-1860), which resulted in a crisis in the Qing Dynasty. Following the foundation of the Republic in 1912 and the following years of civil wars and warlordism, “the state granary system became almost non-existent.” Throughout the history of the Byzantine Empire, various social welfare services and institutions were established. Provision

15708-428: The working class, new programs have successfully focused on locating and targeting the very poorest. The impacts of social assistance programs vary between countries, and many programs have yet to be fully evaluated. According to Barrientos and Santibanez, the programs have been more successful in increasing investment in human capital than in bringing households above the poverty line. Challenges still exist, including

15840-476: The world, recovery from the Great Depression began in 1933. In the U.S., recovery began in early 1933, but the U.S. did not return to 1929 GNP for over a decade and still had an unemployment rate of about 15% in 1940, albeit down from the high of 25% in 1933. There is no consensus among economists regarding the motive force for the U.S. economic expansion that continued through most of the Roosevelt years (and

15972-673: The world. The financial crisis escalated out of control in mid-1931, starting with the collapse of the Credit Anstalt in Vienna in May. This put heavy pressure on Germany, which was already in political turmoil. With the rise in violence of National Socialist ('Nazi') and Communist movements, as well as investor nervousness at harsh government financial policies, investors withdrew their short-term money from Germany as confidence spiraled downward. The Reichsbank lost 150 million marks in

16104-778: The worldwide economic decline and eventual recovery. Bernanke also saw a strong role for institutional factors, particularly the rebuilding and restructuring of the financial system, and pointed out that the Depression should be examined in an international perspective. Women's primary role was as housewives; without a steady flow of family income, their work became much harder in dealing with food and clothing and medical care. Birthrates fell everywhere, as children were postponed until families could financially support them. The average birthrate for 14 major countries fell 12% from 19.3 births per thousand population in 1930, to 17.0 in 1935. In Canada, half of Roman Catholic women defied Church teachings and used contraception to postpone births. Among

16236-658: Was a scramble to deflate prices to get the gold standard's conversation rates back on track to pre-WWI levels, by causing deflation and high unemployment through monetary policy. In 1933 FDR signed Executive Order 6102 and in 1934 signed the Gold Reserve Act . The two classic competing economic theories of the Great Depression are the Keynesian (demand-driven) and the Monetarist explanation. There are also various heterodox theories that downplay or reject

16368-505: Was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty; drastic reductions in liquidity , industrial production, and trade; and widespread bank and business failures around the world. The economic contagion began in 1929 in the United States , the largest economy in the world, with the devastating Wall Street stock market crash of October 1929 often considered

16500-478: Was a small part of overall economic activity in the U.S. and was concentrated in a few businesses like farming, it was a much larger factor in many other countries. The average ad valorem (value based) rate of duties on dutiable imports for 1921–1925 was 25.9% but under the new tariff it jumped to 50% during 1931–1935. In dollar terms, American exports declined over the next four years from about $ 5.2 billion in 1929 to $ 1.7 billion in 1933; so, not only did

16632-479: Was able to afford one of the best-developed and most comprehensive welfare systems in the world, supported by a well-developed and stable economy. Norway has a strong welfare state that provides a range of social services and financial assistance to its citizens. The Norwegian welfare state is based on the principles of social democracy, which means that it has a strong focus on reducing income inequality and promoting social cohesion. The Norwegian welfare state provides

16764-611: Was also made for the State to provide food and clothing for children that parents were unable to bring up due to indigence. In later Protestant European nations such as the Dutch Republic , welfare was managed by local guilds until the abolition of the guild system in the early 19th century. In the free imperial cities of the Holy Roman Empire , the city governments in cities like Nuremberg could take control of

16896-474: Was endorsed in 2002 by Federal Reserve Governor Ben Bernanke in a speech honoring Friedman and Schwartz with this statement: Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression, you're right. We did it. We're very sorry. But thanks to you, we won't do it again. The Federal Reserve allowed some large public bank failures – particularly that of

17028-426: Was given by American economists Milton Friedman and Anna J. Schwartz . They argued that the Great Depression was caused by the banking crisis that caused one-third of all banks to vanish, a reduction of bank shareholder wealth and more importantly monetary contraction of 35%, which they called "The Great Contraction ". This caused a price drop of 33% ( deflation ). By not lowering interest rates, by not increasing

17160-500: Was in the form of Federal Reserve demand notes. A "promise of gold" is not as good as "gold in the hand", particularly when they only had enough gold to cover 40% of the Federal Reserve Notes outstanding. During the bank panics, a portion of those demand notes was redeemed for Federal Reserve gold. Since the Federal Reserve had hit its limit on allowable credit, any reduction in gold in its vaults had to be accompanied by

17292-446: Was intended. It exacerbated the Great Depression by preventing economic recovery after domestic production recovered, hampering the volume of trade; still there is disagreement as to the precise extent of the Act's influence. In the popular view, the Smoot–Hawley Tariff was one of the leading causes of the depression. In a 1995 survey of American economic historians, two-thirds agreed that the Smoot–Hawley Tariff Act at least worsened

17424-470: Was the rollback of those same reflationary policies that led to the interruption of a recession beginning in late 1937. One contributing policy that reversed reflation was the Banking Act of 1935 , which effectively raised reserve requirements, causing a monetary contraction that helped to thwart the recovery. GDP returned to its upward trend in 1938. A revisionist view among some economists holds that

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