From Warfare to Welfare in Three Generations

Historically, governments concerned themselves largely with external relations; government finances were dominated by financing foreign wars, and by paying down the debts incurred in those wars. This has changed rapidly since the late 19th century with the emergence of the Welfare State, which has greatly expanded the role of government. Success in improving the life-expectancy and quality of life has further expanded the demands on public finances, and these trends will continue. Despite the visibility of these future demands, government finances have sharply weakened in recent years, placing greater burdens on future generations.