Montag, 5. Dezember 2011

Prof. Krugman on the welfare state

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?

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