The history of the international political economy over the past 100 years is one of societies moving along a continuum from left to right, and vice versa, alternately choosing for more or less governmental interference in the economic process through democratic decision-making procedures. By doing so, these societies are exchanging the market for the government, or the government for the market. Apparently, the government and the market are each other’s correction mechanism. When the market produces excesses, excluding too many people from prosperous developments, the government is there to correct it, in order to uphold social cohesion. When the government has too strong a grip on society, thereby frustrating per- sonal freedom and development, the market is there to reward individual initiative to undertake new ventures.


Welfare State International Political Economy Globalization Game Dutch Health Care System Social Security Spending 
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  2. 2.
    In the Netherlands, for example, relocating industrial activities to low-wage countries did not, on balance, result in a loss of jobs over the past ten years. In contrast, almost 1,000,000 full-time equivalent new jobs have been created during this period (Vries, B. de: ibid., p. 38).Google Scholar
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    Vries, B. de: ibid., p. 151.Google Scholar
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