Social welfare in the context of economic change

Abstract

The European Union is considered the largest structure with huge economic potential. However, a significant slowdown or even stagnation of economic growth is expected in the future. Most of all, social isolation and increased polarization of the population are affected. The theories of the relationship between social welfare and economic growth in the article suggest that there is a close relationship between differentiation of the population and sustainable economic growth. An analysis of the scientific literature conducted during the study showed that countries in which successful social prevention has a higher potential for economic growth. A multi-criteria analysis was carried out using the SAW approach to assess which EU countries are most successfully solving social problems. The first analysis showed that countries that pay more attention to the prevention of social problems are characterized by improved relations between the state and the market, as well as increased public confidence in public policy and a desire to contribute. Such a tandem of social activity stabilizes and improves the economic and social situation of states. The results obtained allowed us to assess the existence of a connection between social security and economic growth. Correlation analysis shows that an increase in social security indicators can affect economic growth, and there is a correlation between them.