ABSTRACT In this essay, I propose an agenda for the welfare state of the 21st century that emphasizes its role as a mechanism of resource allocation. Since social and environmental problems are getting out of hand, the time for mere compensation is over: we need a mechanism for directly influencing systems of production and patterns of consumption in the direction of addressing those problems. This partially translates into a decisive sectoral shift towards public social services led by the welfare state. Among the advantages of this move, in addition to more socially balanced outcomes, are quality jobs and fulfillment of social needs in an environment-friendly way. The allocative task which gives the welfare state a constitutive role in shaping the socioeconomy complements its classic function as problem fixer. The allocative welfare state must be prepared to limit the domain of market allocation.

ABSTRACT In this essay, I propose an agenda for the welfare state of the 21st century that emphasizes its role as a mechanism of resource allocation. Since social and environmental problems are getting out of hand, the time for mere compensation is over: we need a mechanism for directly influencing systems of production and patterns of consumption in the direction of addressing those problems. This partially translates into a decisive sectoral shift towards public social services led by the welfare state. Among the advantages of this move, in addition to more socially balanced outcomes, are quality jobs and fulfillment of social needs in an environment-friendly way. The allocative task which gives the welfare state a constitutive role in shaping the socioeconomy complements its classic function as problem fixer. The allocative welfare state must be prepared to limit the domain of market allocation.

Against the background of the generalized reduction of poverty in the world, and particularly in Brazil, this article intends to gauge the socio-economic profile of Brazilian households that emerged from poverty and have been identified as integrating a "new middle class". Using indicators of standards of living from the 2008-2009 Survey on Family Budgets (POF/IBGE), we found out that, in contrast to what has been assumed on the basis of average income criteria, this social stratum is markedly heterogeneous, most of it being similar in their consumption patterns to the economically vulnerable or outright poor strata. So, we conclude that, from a sociological perspective that demands additional conditions besides income levels to identify social classes, it is a category mistake to call this social stratum a new middle class. We conjecture that this may be consequential in terms of policy priorities and choices.

Against the background of the generalized reduction of poverty in the world, and particularly in Brazil, this article intends to gauge the socio-economic profile of Brazilian households that emerged from poverty and have been identified as integrating a "new middle class". Using indicators of standards of living from the 2008-2009 Survey on Family Budgets (POF/IBGE), we found out that, in contrast to what has been assumed on the basis of average income criteria, this social stratum is markedly heterogeneous, most of it being similar in their consumption patterns to the economically vulnerable or outright poor strata. So, we conclude that, from a sociological perspective that demands additional conditions besides income levels to identify social classes, it is a category mistake to call this social stratum a new middle class. We conjecture that this may be consequential in terms of policy priorities and choices.