Welfare State

DEFINITION of 'Welfare State'

A concept of government in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. A welfare state is based on the principles of equality of opportunity, equitable distribution of wealth and public responsibility for those unable to avail themselves of the minimal provisions of a good life. Under this system, the welfare of its citizens is the responsibility of the state.

BREAKING DOWN 'Welfare State'

Under this method, the government oversees and administers healthcare, education, employment, social security and other resources that help maintain the standard of living of the state's citizens.


Supplemental Social Security Income (SSI) is one of these programs. SSI is a federal income supplement program funded by general tax revenues, not by Social Security taxes that was initiated in order to help the less fortunate.

RELATED TERMS
  1. Welfare Capitalism

    Definition of welfare capitalism.
  2. Socially Responsible Investment ...

    Socially responsible investing looks for investments that are ...
  3. Social Responsibility

    The idea that a company should embrace its social responsibilities ...
  4. Social Security

    A United States federal program of social insurance and benefits ...
  5. Social Security Tax

    The tax levied on both employers and employees used to fund the ...
  6. Social Choice Theory

    Individual preferences are aggregated to produce a social welfare ...
Related Articles
  1. Retirement

    Social Security - Are You Covered?

    If you aren't a U.S. citizen, even if you are a legal resident, you may be missing out on government programs.
  2. Retirement

    When Do I Stop Paying Social Security Tax?

    Almost never, unless you belong to one of these special groups.
  3. Retirement

    These 13 States Tax Your Social Security Benefits

    It may surprise many that Social Security benefits are taxed. The best way to not let it derail your tax situation is to plan for it. Here's how.
  4. Investing Basics

    When Socially Responsible Investing Hurts

    Socially responsible investing can make you feel good but it may not boost your returns.
  5. Retirement

    10 Common Questions About Social Security

    Find out everything you need to know about this program.
  6. Insurance

    5 Safety Net Services Available To Americans

    Here's a look at the different services available, the numbers of people they serve and how much money is used to support them.
  7. Retirement

    How Social Security for Legal Immigrants Works

    If you earn enough work credits in the U.S. – or combined with credits from certain other countries – you can claim benefits. Here is how.
  8. Stock Analysis

    Five Socially Responsible Stocks

    Making money in the market shouldn't prevent you from sleeping at night. Find out how to keep your conscience clean and bank account growing.
  9. Taxes

    6 Things To Know About Social Security In 2011

    Staying aware of the changes in this important government program will help you be better prepared in both your present and future financial planning efforts.
  10. Retirement

    4 Things That Are Reducing Your Social Security

    Worried about Social Security dwindling? We discuss four ways it’s already happening.
RELATED FAQS
  1. Is Social Security considered to be welfare?

    Learn why Social Security is an entitlement, not welfare. Since 1940, Social Security has kept its promise to Americans who ... Read Answer >>
  2. What is the Social Security administration responsible for?

    Learn about the Social Security Administration's main responsibilities along with its history, structure and social safety ... Read Answer >>
  3. How does a provident fund compare to U.S. Social Security?

    Find out how provident funds compare to the U.S. Social Security program, including examples of income limits and contribution ... Read Answer >>
  4. Why is social responsibility important in marketing?

    Drive consumers toward products and services by prioritizing social responsibility in marketing to enhance the company's ... Read Answer >>
  5. What is the Social Security tax rate?

    Learn what the Social Security tax rate is, how it has evolved over the years, what is future may hold and a common complaint ... Read Answer >>
  6. What are the Social Security tax caps?

    Learn how the Social Security tax cap works, what percentage of income is deducted for Social Security taxes and the history ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center