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Economics

The Political Economy of Welfare State Retrenchment

Quick fact

Welfare state retrenchment often happens not through dramatic cuts, but via incremental 'hidden' changes like shifting from inflation-indexed to fixed-rate pensions, which accumulate over time without a single visible political battle.

Why this is interesting

Everyone loves their welfare benefits—pensions, healthcare, unemployment support—yet governments often cut them. Why would politicians risk losing votes by dismantling popular programs?

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The Political Economy of Welfare State Retrenchment

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