By Keith G. Banting
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Additional resources for The welfare state and Canadian federalism
Under this system, a significant portion of FIP has been shared, especially during the years during which Saskatchewan allowed FIP levels to stagnate. Quebec, on the other hand, has refused to "shadow test" its Work Income Supplement, and has received no federal contribution at all, a fact which has understandably generated anger in Quebec City. 20 This sort of tension is certain to increase in the future as more provinces experiment with "work incentive" programs. Growth in Public Income Security Public expenditure on income security has been rising rapidly over the last decade.
Economic Development. The modern welfare state has its roots in the industrial revolution of the nineteenth and twentieth centuries. The transition from an agrarian to an industrial society exposed whole populations to a new and uncertain economic environment, and the industrial wage system 32 Chapter Three left people particularly vulnerable during unemployment, illness, and old age. At the same time, however, traditional social institutions, such as the family and local communities, which had hitherto provided support and protection during periods of economic adversity, were themselves changing in the new urban setting, and were less and less able to cope with the new range of social problems facing the population.
1 Support for this line of reasoning comes from cross-national studies of social security in countries at different levels of economic development. "3 In global terms, then, income security protection is the product of affluence rather than poverty. Such comparative studies also emphasize that the welfare state is not the unique creation of democratic politics. The need for new forms of social protection in an industrial setting exists independently of the nature of the political order, and democratic and non-democratic nations alike have responded with often remarkably similar levels of social security spending.