One hundred years of money,welfare and death: mortality,economic growth and the development of the welfare state in 17 OECD countries 1900–2000

Kangas O. One hundred years of money, welfare and death: mortality, economic growth and the development of the welfare state in 17 OECD countries 1900–2000 Int J Soc Welfare 2010: ??: ??–??© 2010 The Author(s), Journal compilation © 2010 Blackwell Publishing Ltd and International Journal of Social Welfare. The article focuses on the role played by the welfare state vis‐à‐vis GDP in the increase of life expectancy in 17 OECD countries 1900–2000. The article shows that money matters, war kills and the welfare state is good for health. There is a curvilinear relationship between prosperity and longevity: after a certain level, the marginal utility of an extra dollar levels off. In the longer run, growth is a necessary but not sufficient condition. The welfare state plays its role, too. Bigger is better, be it with regard to social spending or the generosity or coverage of social protection. For the life expectancy of a population to increase, it is better to have broader coverage or universal access to care than to have more generous benefits, which are channelled to a limited circle of citizens. It is better to give adequately to all than lavishly to too few.