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Austerity Versus Stimulus: Theoretical Perspectives And Policy Implications, James Midgley

The Journal of Sociology & Social Welfare

Attempts to respond to the negative social and economic effects of the Great Recession have been cast in terms of the austerity versus stimulus debate. Although oversimplified, this debate reflects wider theoretical analyses of market economies and normative prescriptions for enhancing their functioning. Referencing the historical evolution of economic thought, these theories and their policy implications for responding to recessions are summarized and their relevance for social welfare is examined in the light of recent events.

Journal Of Sociology & Social Welfare Vol. 41, No. 2 (June 2014)

The Journal of Sociology & Social Welfare

Table of Contents

INTRODUCTION TO THE SPECIAL ISSUE - Howard Karger, James Midgley, and Subas Risal

AUSTERITY VERSUS STIMULUS: THEORETICAL PERSPECTIVES AND POLICY PRESCRIPTIONS - James Midgley

THE BITTER PILL: AUSTERITY, DEBT, AND THE ATTACK ON EUROPE'S WELFARE STATES - Howard Karger

BETWEEN RETRENCHMENT AND RECALIBRATION: THE IMPACT OF AUSTERITY ON THE IRISH SOCIAL PROTECTION SYSTEM - Fiona Dukelow and Mairéad Considine

ITALIAN WELFARE IN THE AFTERMATH OF ECONOMIC CRISIS: NEOLIBERAL REFORMS AND LIMITS TO THE PATH DEPENDENCY APPROACH - Ijin Hong

DEFICIT-DRIVEN AUSTERITY POLICIES: EFFECTS ON LOCAL GOVERNMENT AND SOCIAL WELFARE IN THE UNITED STATES - David Miller and …

The Bitter Pill: Austerity, Debt, And The Attack On Europe's Welfare States, Howard Karger

The Journal of Sociology & Social Welfare

There is a general belief among may European policymakers that the current debt problem in some Eurozone countries is caused by the unsustainable levels of governmental spending required to maintain overly generous welfare state programs, a bloated public sector, overly generous pension levels, state subsidies, and low user fees for services. Their proposed solution lies in implementing stringent austerity measures designed to discipline debt-ridden governments by cutting public budgets, reducing the number of public sector workers, curbing social benefits, and sharply narrowing the scope of the welfare state. Based on a belief in ‘expansionary austerity,’ this approach repudiates a key …

Between Retrenchment And Recalibration: The Impact Of Austerity On The Irish Social Protection System, Fiona Dukelow, Mairead Considine

The Journal of Sociology & Social Welfare

This article analyzes the impact of austerity on the Irish social protection system. The analysis is situated in Ireland’s wider financial and economic crisis and its status as an ‘early adopter’ of an austerity response which has continued under European Union/International Monetary Fund intervention. We focus on how the crisis instigated a political narrative about the cost and design of the social protection system, leading to a programme of retrenchment and reform which has blended a politics of blame avoidance with credit claiming. Three core elements in this narrative— generosity, sustainability and suitability— are identified, and against this background, a …

Italian Welfare In The Aftermath Of The Economic Crisis: Neoliberal Reforms And Limits To The Path Dependency Approach, Ijin Hong

The Journal of Sociology & Social Welfare

The 2008 world economic crisis provided a plausible rationale for policy makers in Italy to push forward long needed welfare cuts, resulting in the neoliberal austerity trend fostered by the Monti government (2011-2012). This paper seeks to understand the logic behind the welfare reforms in Italy after the 2008 economic crisis by describing implemented measures and reviewing available theoretical approaches in literature that could account for the reforms’ neoliberal shift from a path-dependent theoretical approach. It is argued that external forces, that is the economic crisis and EU pressures, represented the main trigger, and that political elites marginalized the role …

Rolling Downhill: Effects Of Austerity On Local Government Social Services In The United States, David B. Miller, Terry Hokenstad

The Journal of Sociology & Social Welfare

Austerity policies have been instituted in countries around the world attempting to address the fallout from the global economic crisis beginning in 2008 and still lingering through today. While the literature debates the economic impact of these policies, limited attention has been given to the effects of austerity at the local governmental level. It is posited that at the local government level, the effects of austerity policies are most noticeable and detrimental. States and local municipalities are “switching roles” with the federal government (Davidson, 2013, p. 1). They are providing jobs and social welfare services in the gap left by …

Weathering The Storm: Botswana's Culture Of Care, Lengwe-Katembula Mwansa, Gloria Jacques

The Journal of Sociology & Social Welfare

Botswana, a semi-desert southern African state ranked among the poorest in the world in the 1960s and 1970s, has emerged as an upper middle income country in the new millennium and a beacon of democracy and good governance on the continent and in the world. Since the discovery of diamonds, Botswana has prudently utilized the ensuing wealth to improve the lives of her citizens. Through a succession of National Development Plans the state has provided social services that have addressed many of the needs of the population. This trend has continued into the challenging era of the world economic crisis …

Considering Post-Crisis Stimulus Measures: Welfare Policy And Social Inclusion In Brazil, Lenore E. Matthew

The Journal of Sociology & Social Welfare

The onset of the 2007-2008 global financial crisis slowed economic growth in Brazil and threatened the country’s established trajectory of decreasing poverty and inequality. To mitigate prolonged effects of the crisis, leadership implemented a growth-with-equity stimulus plan, of which investment in income augmentation and human capital-building programs for the poor were primary elements. This article examines the economic and social impacts of the stimulus package. It shows that stimulus measures had overall positive effects on the economy, but mixed effects on the well-being of the underprivileged. Improvements in the underprivileged population’s well-being may be less profound than officials have reported, …

Queensland's Budget Austerity And Its Impact On Social Welfare: Is The Cure Worse Than The Disease?, Gregory Marston

The Journal of Sociology & Social Welfare

While considerable attention has been paid to the austerity experiments in Europe, much less attention has been paid to austerity case studies from other parts of the world. This paper examines the case of Queensland, Australia, where the government has pursued austerity measures, while making dire warnings that unless public debt was slashed and the public service sector downsized, Queensland risked becoming the Spain of Australia. The comparison is incomprehensible, given the very different economic situation in Queensland compared with Spain. This comparison constructed a sense of crisis that helped to mask standard neoliberal economic reform. While pursuing neoliberal economic …

Review Of Sustainable Failures: Environmental Policy And Democracy In A Petro-Dependent World. Sherry Cable. Reviewed By Chris Williams, Chris Williams

The Journal of Sociology & Social Welfare

Sherry Cable, Sustainable Failures: Environmental Policy and Democracy in a Petro-Dependent World. Temple University Press (2012). $29.95 (paperback).

Review Of Mental Health And Social Policy. Beyond Managed Care (6th Ed.). David Mechanic, Donna D. Mcalpine, And David A. Rochefort. Reviewed By Christopher G. Hudson, Christopher G. Hudson

The Journal of Sociology & Social Welfare

David Mechanic, Donna D. McAlpine, and David A. Rochefort, Mental Health and Social Policy: Beyond Managed Care (6th ed.). Pearson (2014). $120.47 (paperback).

Review Of Family Policy And The American Safety Net. Janet Zollinger Giele. Reviewed By Mary Ann Kanieski, Mary Ann Kanieski

The Journal of Sociology & Social Welfare

Janet Zollinger Giele, Family Policy and the American Safety Net. Sage (2013). $26 (paperback).

Review Of The New Black: What Has Changed – And What Has Not – With Race In America. Kenneth W. Mack & Charles Guy-Uriel (Eds.). Reviewed By Johnnie Hamilton-Mason., Johnnie Hamilton-Mason

The Journal of Sociology & Social Welfare

Kenneth W. Mack & Charles Guy-Uriel (Eds.), The New Black: What Has Changed – and What Has Not – with Race in America. The New Press (2013). $21.95 (paperback).

Review Of The Globalization Of Supermax Prisons. Jeffrey Ian Ross (Ed.). Reviewed By Ann Marie Rocheleau., Ann Marie K. Rocheleau

The Journal of Sociology & Social Welfare

Jeffrey Ian Ross (Ed.), The Globalization of Supermax Prisons. Rutgers University Press (2013). $28.95 (paperback), $72.00 (hardcover).

Review Of The Idealist: Jeffrey Sachs And The Quest To End Poverty. Nina Munk. Reviewed By Edward U. Murphy, Edward U. Murphy

The Journal of Sociology & Social Welfare

Nina Munk, The Idealist: Jeffrey Sachs and the Quest to End Poverty. Doubleday (2013). $15.95 (paperback).

Review Of Ethics. Sarah Banks (Ed.). Reviewed By Jennifer R. Zelnick, Jennifer R. Zelnick

The Journal of Sociology & Social Welfare

Sarah Banks (Ed.), Ethics. (Critical and Radical Debates in Social Work, I. Ferguson & M. Lavalette, series editors). Policy Press (2014). $15.00 (paperback).

Resident Perceptions Of Redevelopment And Gentrification In The Heartside Neighborhood: Lessons For The Social Work Profession, Mackenzi Huyser, Judi Ravenhorst Meerman

The Journal of Sociology & Social Welfare

This article reports on how residents experience neighborhood redevelopment efforts and gentrification. Research on gentrification has been dominated by studies on displacement and other factors that impact neighborhood mobility. This article explores how low-income and homeless residents experience gentrification by using in-depth interviews with residents still living in the Heartside neighborhood (Grand Rapids, MI). Findings are evident in three broad areas: sense of belonging, recognition of changes in the neighborhood, and restrictions in the neighborhood. Discussion of these findings and implications for social workers are presented.

Latino Migration To Protestantism: A Historical, Socio-Cultural, Ecclesiastical Analysis, Larry Ortiz

The Journal of Sociology & Social Welfare

The “browning of America” in the 21st century has brought about many social changes within the heterogeneous group known as Latinos and among the general U.S. population and its other ethnic groups. One notable change is religious preferences among recent immigrants and second and third generation Latinos in favor of Protestantism. Although Latinos have for many years had a limited presence among Protestant groups, over the last decade or two there has occurred a significant defection from the Roman Catholic Church to evangelicalism in particular. The implications of this are quite unknown to social workers and social scientists but are …

Journal Of Sociology & Social Welfare Vol. 41, No. 3 (September 2014)

The Journal of Sociology & Social Welfare

Table of Contents

RESIDENT PERCEPTIONS OF REDEVELOPMENT AND GENTRIFICATION IN THE HEARTSIDE NEIGHBORHOOD: LESSONS FOR THE SOCIAL WORK PROFESSION - Mackenzi Huyser and Judi Ravenhorst Meerman

LATINO MIGRATION TO PROTESTANTISM: A HISTORICAL, SOCIO-CULTURAL, ECCLESIASTICAL ANALYSIS - Larry Ortiz

THE IMPACT OF GENDER AND SOCIAL NETWORKS ON MICROENTERPRISE BUSINESS PERFORMANCE - Seon Mi Kim and Margaret Sherraden

SOCIAL POLICY AND STATE CAPACITY IN IRAN: HEALTH AND EDUCATION POLICY FROM 1981-2009 - Masoumeh Qarakhani

INCOME PACKAGING STRATEGIES OF ECONOMICALLY DISCONNECTED WOMEN AND THE IMPLICATIONS FOR SOCIAL POLICY AND PRACTICE - Andrea Hetling, Jinwoo Kwon, and Elizabeth Mahn

THE CONSOLIDATION OF THE SECONDARY …

The Impact Of Gender And Social Networks On Microenterprise Business Performance, Seon-Mi Kim, Margaret Sherraden

The Journal of Sociology & Social Welfare

Why are some people more successful than others in starting new businesses? Are women more or less successful than men? This study investigates relationships among gender, social networks, and microenterprise business performance. It examines existing theories and research on gender differences in social networks and whether gender differences affect female micro-entrepreneurs’ business performance. The purpose of this study is to help U.S. Microenterprise Development Programs create strategies to enhance the ability of female micro-entrepreneurs to gain economic benefits from their social networks. The paper identifies key gaps in theory, proposes an alternative research framework, and suggests directions for future research …

Social Policy And State Capacity In Iran: Health And Education Policy From 1981-2009, Masoumeh Qarakhani

The Journal of Sociology & Social Welfare

The fact that states operate under different structures and capacities in order to provide welfare and social justice for their citizens has been the subject of various studies. Since the capacity of states differs at various times and in different situations, their capabilities for welfare provision vary as well. The present paper draws upon the state-centered framework, applying quantitative methods and secondary data to study the relationship between state capacity and two aspects of social policy, education and health in Iran from 1981 to 2009. The findings reveal that there is no statistically significant relationship between state capacity and education …

Income Packaging Strategies Of Economically Disconnected Women And The Implications For Social Policy And Practice, Andrea Hetling, Jinwoo Kwon, Elizabeth Mahn

The Journal of Sociology & Social Welfare

Income packaging, or piecing together cash and non-cash resources from a variety of sources, is a common financial survival strategy among low-income women. This strategy is particularly important for economically disconnected women, who lack both employment income and public cash assistance receipt. Using data from the confidential Census Bureau versions of the Survey of Income and Program Participation, this study compares the use of public and private supports between disconnected and connected low-income women, controlling for differences in state welfare rules and county unemployment rates. Findings from bivariate comparisons and multilevel logistic regressions indicate that disconnected women utilize public non-cash …

The Consolidation Of The Secondary Financial Services Market, David Stoesz

The Journal of Sociology & Social Welfare

Stagnant income and persistent debt have induced low- and middle-income households to rely on alternative financial services (AFS): buy-here-pay-here auto loans, check-cashers, payday loans, auto title loans, rent-to-own furniture and appliances, and pawnshops. A secondary financial services market has evolved to serve the secondary labor market, replete with trade associations as well as state and federal regulators. Mainstream financial institutions have marketed innovations, such as reloadable debit cards, to appeal to low- and middle-income consumers. High fees and interest rates of AFS products have fueled a volatile debate about the future of the secondary financial services market, with options including …

The Impact Of Youth Debt On College Graduation, Min Zhan

The Journal of Sociology & Social Welfare

This study examines the associations between educational loans and credit card debt with the possibility of college graduation among a group of youth who enrolled in college. It further investigates whether the associations differ by levels of parental assets. Results indicate that, after parental assets and other variables are considered, educational loans are positively related to college graduation; however, there is evidence that educational loans above $10,000 reduce the probability of college graduation. Parental assets are positively linked to youth’s college graduation, and the relationship between educational loans and college graduation is stronger among youth whose families have lower levels …

Deputized Brokers: A Technique For A Case Study Of Conservative Think Tanks In 1990s Welfare Reform, Sergio Romero

The Journal of Sociology & Social Welfare

This study proposes a novel analytical technique in a case study of think tank brokerage. As brokers, think tanks structurally link foundations and media, yet they do so as representatives of a policy network consisting of corporate funders and affiliated think tanks. Print media sought their policy analysis regarding the welfare system and prescriptions for reform. Network and content methods are the bases for the presentation of the technique. The coupling of results from each of the technique’s components shows how resources tie actors, as well as how their conversion from one form to another is the basis for a …

Review Of Capital In The Twenty-First Century. Thomas Piketty. Reviewed By Charles Levenstein, Charles Levenstein

The Journal of Sociology & Social Welfare

Thomas Piketty, Capital in the Twenty-First Century. Harvard University Press (2014). Translated by Arthur Goldhammer. $39.95 (hardcover), 696 pages.

Review Of Save Our Unions. Steve Early. Reviewed By Luke Elliott-Negri, Luke Elliott-Negri

The Journal of Sociology & Social Welfare

Steve Early, Save Our Unions. Monthly Review Press (2013). $19.95 (paperback), 344 pages.

Review Of My Dog Always Eats First: Homeless People And Their Animals. Leslie Irvine. Reviewed By Tiffany A. Parsons, Tiffany Parsons

The Journal of Sociology & Social Welfare

Leslie Irvine, My Dog Always Eats First: Homeless People and Their Animals. Lynne Rienner (2013). $55.00 (hardcover), 140 pages.

Review Of The Divide: American Injustice In The Age Of The Wealth Gap. Matt Taibbi. Reviewed By Marguerite Rosenthal, Marguerite Rosenthal

The Journal of Sociology & Social Welfare

Matt Taibbi, The Divide: American Injustice in the Age of the Wealth Gap. Spiegel & Grau (2014). $27 (hardcover), $17 (paperback), 416 pages.

Are Payday Loans Really Evil? Controversy, Regulation, And Innovation In The Secondary Financial Services Market, David Stoesz

The Journal of Sociology & Social Welfare

Stagnant income and persistent debt have induced low- and middle-income households to rely on alternative financial services (AFS): buy-here-pay-here auto loans, check-cashers, payday loans, auto title loans, rent-to-own furniture and appliances, and pawnshops. A secondary financial services market has evolved to serve the secondary labor market, replete with trade associations as well as state and federal regulators. Mainstream financial institutions have marketed innovations, such as reloadable debit cards, to appeal to low- and middle-income consumers. High fees and interest rates of AFS products have fueled a volatile debate about the future of the secondary financial services market, with options including …