The size of the state increased continuously since late nineteenth century, if we measure it by expenditures in relation to GDP. Growth leads cyclically to crisis. State intervention or regulation takes place according to a cyclical pattern. The social-democratic state was successful in promoting economic growth and social justice in the developed countries between the 1930s and the 1970s. In this last decade, however, three different, though related, historical processes–the neo-liberal ideological wave, globalization, and the fiscal crisis of the state–gained momentum and led the social-democratic state into crisis, aiding the transition to the social-liberal state. The fiscal crisis evolved from a distorted and excessive growth of the state; the other two factors were exogenous to the state organization.
Keywords: cycles of the state; fiscal crisis; globalization; neo-liberal wave; state growth
Chapter. 5057 words.
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