State Participation in the Economy: USA, Sweden, Cuba

How Does the State Participate in the Economy?

United States of America

The State does not participate in regulating the market and economy. For example, in the USA, there is no minimum salary approved by law or severance pay if someone is dismissed.

Sweden

The State participates in regulating the basic economic and labor issues. For example, there is a minimum salary approved by law and severance pay if you are dismissed.

Cuba

The State regulates nearly all aspects that affect citizens, such as salaries and the prices of basic products.

Is Civil Society Involved in the Welfare State?

United States of America

There are plenty of civil society associations to help needy citizens because their basic needs are not covered at all. This service is given by voluntary charity associations.

Sweden

Civil society is quite active. For example, they often ask the State to offer basic services, or the State gives public money to civil society to fund their initiatives.

Cuba

The State regulates nearly all aspects that affect citizens, such as salaries and the prices of basic products.

Types of Welfare States

Depending on the political tradition and party, the development of the welfare state will differ.

United States of America

Liberal State

(Liberal means that they support capitalism and usually belong to the right wing. For example, the former president, Mr. Trump, is completely liberal.)

Sweden

Social Democracy

(This type of state was developed after the Second World War. The idea is to provide benefits and help to cover the most basic needs, but the economic model continues to be capitalist.)

Cuba

Communist

(In 1959, Fidel Castro, Che Guevara, and other armed men overthrew Batista's dictatorship and established a communist government, helped by the USSR (Soviet Union = nowadays Russia).)