Abstract

Hegel’s defense of the welfare state retains appeal when grounded in dialogical human rights ethics defended as true normative ethical theory. His dialectic of trade passes through budding consumer desires in the once sovereign family and trade between households risking market-induced poverty, ending in market regulation by an external welfare state. The dialectic recurs on a higher level as we in domestic civil society turn to foreign products. Market-induced poverty generates an external global welfare state gradually visible in today’s international financial institutions Hegel did not see. The US has fallen subject to the dialectic of trade, with relative economic decline and a more dialogical relation with the outside world. Yet a welfare state does not replace the market, but protects it against from itself. Entrepreneurship remains key to fighting world poverty. Beside mini-loans, “mini competitive economic colonialism”—neither classical political colonialism nor monopolistic economic neocolonialism—creates new consumer markets in the poorest nations for the products of developed nations, and vice versa: developing nations are not made dependent on a single foreign power or international financial organization, nor forced to generate investment capital domestically by an authoritarian suppression of consumption and democracy, nor forced to sacrifice economic development.