Which of the following describes a major contradiction faced by developed democracies in their attempts to maintain the welfare state?
A) The problem could be mitigated by accepting more immigrants, but that creates a new problem because citizens are largely unwilling to extend benefits to immigrants.
B) One possible solution is to cut back on benefits, but benefits have already decreased as revenues have shrunk, and yet the problem has not diminished.
C) Expanding the labor market through measures like increased retirement age is a potential solution, but so far advanced democracies have only proved to be willing to shrink the labor market.
D) Increased immigration and later retirement could be combined to mitigate the problem, but states are unable to regulate the retirement age of immigrants into the labor market.
E) A shift back to industrial labor would provide more concrete employment and benefits for many, but such a move would reduce the overall revenue of the state.
Correct Answer:
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