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fiscal crisis of the state

The theory of the fiscal crisis of the state developed in response to a widespread consensus of the 1960s that the capitalist state's enhanced, downwardly redistributive economic role was likely to continue. Thus writers like Andrew Shonfield (1965) and Harold Wilensky (1975) could envisage the continued growth of the welfare state as both integral to the contemporary phase of advanced capitalist development and desirable as a means of reducing inequality and of raising living standards more broadly. [Source: The Encyclopedia of Political Science; State, Fiscal Crisis of the]

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