This chapter emphasizes the deliberate political decision by which countries like the United States initially established a liberal state, which adopted the welfare state model in the twentieth century, while the European countries establish a social state within the liberal tradition as a deliberate democratic political decision supporting economic equality and individual well-being. The European model, which was later adopted by non-Western countries such as India and South Africa, is, however, being reversed by the process of globalization of trade and internationalization of economy without democratic legitimization because the demos are not part of these decisions. To that extent these decisions, besides reversing the European process of social state, also fail to satisfy the principle of democratic decision making.
