This blog post examines how the social safety net of a welfare state enables individuals to endure failure, and why creativity and innovation emerge in that process, using statistics and research cases. It also discusses the relationship between welfare and future growth.
When you’re hungry, creativity vanishes
There are many reasons we should move toward welfare capitalism, but one particularly crucial reason lies in ‘creativity,’ arguably the core theme of the 21st century. According to data from the Korea Institute for Health and Social Affairs, among OECD countries, Korea’s welfare index ranks 26th out of 30 nations, placing it near the bottom. Norway ranks 1st, Luxembourg 2nd, the Netherlands 3rd, Denmark 4th, and Sweden 5th, with traditional European welfare powerhouses dominating the top positions. Subsequent international comparative indicators consistently confirm similar gaps in national welfare levels.
Furthermore, data from the Korea Institute of Science and Technology Policy shows that among 15 OECD countries, Korea’s creativity index ranks 11th, again placing it in the lower-middle tier. Sweden ranked 1st, Switzerland 2nd, Finland 3rd, the Netherlands 4th, and Norway 5th. Subsequent studies and international reports also note that Nordic and Western European welfare states consistently receive high evaluations in innovation and creativity indicators.
Interestingly, there is significant overlap between the countries ranking high in creativity indices and those ranking high in welfare indices. This strongly suggests that creativity indices are deeply linked to welfare indices. In short, citizens of welfare states tend to score higher on creativity indices.
Creativity is often cited as the most crucial growth engine for developing future societies. It enables technological innovation, allows for the creation of better content, and through this, can generate new jobs and enhance export competitiveness. Furthermore, this creativity can forge new solutions to overcome the various crises currently facing capitalism and provide diverse ideas for building a better society. In this context, it is worth considering the explanation by Professor Lee Jung-woo from the Department of Economics and International Trade at Kyungpook National University.
“A welfare state is a country with a well-established social safety net, allowing those who fail to get back up. Because there is a guarantee that they can bounce back, people are able to take risks. A welfare state has the effect of promoting these elements: risk-taking, creativity, invention, and innovation.”
Can creativity truly emerge when one is starving? Can creativity truly emerge in a society where failure means immediate ruin? Creativity only begins amidst endless failure and risk-taking. Mahatma Gandhi once said the following on this matter.
“Freedom without the liberty to fail is worthless.”
Research on Children’s Career Choices Based on Income
Let’s examine a research case that more concretely illustrates the relationship between welfare and creativity. One study indicates that children from wealthier backgrounds tend to choose more adventurous careers. In 2005, Raven Sachs (Professor of Economics, Harvard University) and Steven Shore (Professor, Wharton School, University of Pennsylvania) presented findings showing that “people with greater economic resources, and their children, tend to choose occupations with higher risk.”
They analyzed which socioeconomic groups chose relatively high-risk occupations based on occupational wage statistics from 1968 to 1993. Their findings concluded that the size of stable wealth secured within the household significantly influences occupational choice, with children from wealthier families more likely to choose adventurous careers. Furthermore, they discovered that these children were approximately 20% more likely to choose occupations with higher risk. Subsequent labor market studies have repeatedly confirmed this correlation between economic stability and occupational choice.
This implies that the more stable one’s life is, the greater the scope to challenge more creative work, even if the possibility of failure exists.
Viewed in this context, the connection between welfare capitalism and a nation’s future becomes clear. In societies with robust welfare systems and less anxiety about the future, more young people are inevitably inclined to undertake creative challenges. Ultimately, the welfare state transcends the simple notion of “helping the vulnerable.” It is a fundamental condition for fostering creativity across society and an indispensable foundation for a nation’s sustainable future growth.
