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Restraining the welfare state
Monday, May 30th, 2011
May 29 2011
… governments provide services, from defence and law enforcement to a humane safety net, that are essential to a successful economy and society. But the size of the welfare state — and the erosion of incentives to work, save and invest, owing to high taxes and bloated transfer payments — is a major impediment to faster income growth. This simple analysis should raise a red flag about how we think about the trade-offs between dynamism and security, or growth and redistribution… to control, reform and reduce government spending… is a prerequisite for substantial economic advance.
Tags: budget, economy, ideology, standard of living
Posted in Governance Policy Context | 1 Comment »
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