Growth dependency in the welfare state | Journal Paper

Christine Corlet Walker, Angela Druckman and Tim Jackson
Ecological Economics | June 2024

Summary

Modern economies rely on economic growth for stability and prosperity. Further, periods of stagnation and recession are currently associated with poor health and wellbeing outcomes for citizens. However, 50 years of research indicates that this state of dependency is ecologically unsustainable. It is therefore critical that we better understand the growth dependency of our economies and welfare systems, and how to overcome it.

In this paper we first offer a working definition of growth dependency, clarifying its core dimensions. Next, taking the UK’s adult social care sector as a case study, we argue that growth dependencies emerge in the welfare state as a result of three distinct dynamics: 1) growth in manifest needs; 2) labour productivity growth; 3) the pursuit of economic rents.

Lastly, we propose a novel, sector-led framework for identifying, analysing and transforming growth dependencies. We make the case that the growth dependency of the welfare state is not inevitable, but is instead the product of specific social, economic and structural factors that can be disrupted and transformed, if we can find the political will to do so.