ROLE OF THE STATE IN ENSURING WELFARE OF POPULATION

Abstract

The article investigated the role of the state in ensuring the welfare of population. Revealed, that a high standard of living are the basis for successful development of country. It is shown, that this problem has investigated ancients Greek philosophers, who believed that state officials have to worry about incomes their subjects. The need to create conditions for a decent standard of living of all sections of the population celebrated the famous Scottish economist Adam Smith and his colleague David Ricardo.
In the years 1929–1933 emerged an economic crisis which has caused great damage to the world economic system and greatly shook the foundations of capitalist society. This caused many of economists to analyze critically the postulates of classical political economy. Under such circumstances John Maynard Keynes concluded that the causes of negative phenomena in the capitalist economy – instability and mass unemployment, associated with the result of the economic policy of non-intervention in economic activities of the state, which has exhausted itself.
That is why James M. Keynes to the mechanisms for the ensure of effective demand, how a determining factor for increasing employment and growth in national income, has included: increasing, through subsidies, grants, benefits, loans, income social groups, which, being the largest group of consumers of goods, have the lowest incomes.
Thus, despite the diversity of economic views of prominent scientists, they the ensuring of the welfare of the population, especially the poor, were considered the foundation for successful development of country. It is revealed, that Ukraine, adhering to the recommendations of monetarists to reduce the monetary base and government spending, freezing of income and social assistance to citizens, caused the recession of the economy and impoverishment of a population.

Therefore, according to the needs of every citizen identified the basic features that rely on the state, namely: creating conditions for a decent life, providing health care and social protection to all members of society and prevent of conditions that could cause a conflict between different sectors of the population. The research carried out allows to state that the heads of state have to worry about ordinary people, especially the poor, improve management and eliminate the blending of business with the government, to support the small businesses, create new jobs and provide decent wages workers.