Prof. Paul Krugman argues in the NYT that it is not the excessive welfare state which is causing the debt problems. My answer to that is the following:
If societies are prepared to pay taxes equivalent to 60% of GDP in order to enable their governments to spend 60% of GDP, that should be acceptable to everyone. The problem begins when societies only want to pay taxes equivalent to 45% of GDP but want their governments to spend 50% of GDP.
Is there a mistake in my math?
If societies are prepared to pay taxes equivalent to 60% of GDP in order to enable their governments to spend 60% of GDP, that should be acceptable to everyone. The problem begins when societies only want to pay taxes equivalent to 45% of GDP but want their governments to spend 50% of GDP.
Is there a mistake in my math?
