When Does a Welfare State Become a Road to Serfdom? A Model of Discretion, Knowledge, and Political Selection
Constitutional Political Economy
When Does a Welfare State Become a Road to Serfdom? A Model of Discretion, Knowledge, and Political Selection
Journal Article
Reference
Berggren , Niclas (forthcoming). “When Does a Welfare State Become a Road to Serfdom? A Model of Discretion, Knowledge, and Political Selection”. Constitutional Political Economy.
Hayek's ”road to serfdom" is not about big budgets, it is about case-by-case discretion replacing general rules. A formal model shows crises tempt voters toward leaders promising swift, targeted action, fueling discretionary drift. Constitutional rules mandating universal welfare programs prevent this without limiting fiscal size.
