"The social welfare state, beyond ideology - is higher taxes and strong 'safety net' is not compatible with a thriving market economy?" Yes, absolutely, said Jeffrey D. Sachs ... November 3, 2011 19 comments
The American former neo-liberal professor and economist Jeffrey D. Sachs in the article "The Social ohio division of corporations Welfare State, Beyond Ideology - Are higher taxes and strong 'safety ohio division of corporations nets' antagonistic to a prosperous market economy. ohio division of corporations The Evidence Is Now in "or in my translation" The social welfare state, beyond ideology - is higher taxes and strong 'safety net' is not compatible with a thriving market economy? The evidence is now. "
"One of the major challenges for sustainable development is to combine society's desire for economic prosperity and social security. For decades, economists and politicians debated how to get the undoubted power in the market to be brought ohio division of corporations into harmony with the återförsäkrande protections that Social Security provides.
America proponent of supply economics argue that the best way to achieve ohio division of corporations well-being of America's poor is by stimulating / giving incentives to the rapid economic growth and the higher taxes needed to fund high levels of social insurances would paralyze / paralyze flourishing. Austria-born frimarknadsekonomen Friedrich August von Hayek blurted that high taxation would be a "road to serfdom, 'a threat ohio division of corporations to liberty itself.
Most of the debate in the United States is obscured by the capital / private interests and by ideology. However, there is now a rich empirical basis for assessing these things scientifically. Support can be found by comparing a group of relative frimarknadsekonomier who have low to moderate levels of taxation and social spending with a group of social welfare states that have high levels of taxation and social spending.
Not coincidentally is lågskatte- and high-income countries mainly English-speaking ones which share a direct ohio division of corporations historical line of 1800s Britain and its theories of laissez-faire / laissez-faire economics. These countries include Australia, Canada, Ireland, New Zealand, UK and USA.
Högskatte- and high-income countries, the Nordic social democracies [that is now rapidly dismantled; as soon as people not to have time to realize what is happening and what the results ohio division of corporations will be], in particular, Denmark, Finland, Norway and Sweden, which has been led by left-of-center-social democratic parties during the greatest part or the entire post-war period [ie, the time after World War II].
They combine a healthy ohio division of corporations respect for market forces with strong anti-poverty commitments programs. Budgetary expenditure for social purposes is on average around 27% of GDP in the Nordic countries and only 17% in English-speaking countries.
On average, outperforming the Nordic countries, the Anglo-Saxon in most dimensions in terms of economic performance. Poverty rates are very low there and national income per working-age population is on average ohio division of corporations higher. Unemployment grades are roughly similar for both groups, only slightly higher ohio division of corporations in the Nordic countries. The budget situation is stronger in the Nordic group, with greater surplus as a share of GDP.
The Nordic countries maintain their dynamics in several ways despite high taxation. Most importantly, they pay liberally research and higher education. All, but especially Sweden and Finland, has devoted itself to the front sweeping information and technology revolution and reached global competitiveness.
Sweden spends nearly 4% of GDP to research and development [R & D = reserach and development], the highest percentage in the world today. On average, so spend the Nordic nations 3% of GDP to research and development, compared to around 2% in the English-speaking nations.
The Nordic states have also worked to maintain social costs / expenditures compatible with an open, competitive, market-based economic system. Levels of taxation on capital are relatively low. Labour market policy pays less skilled and otherwise difficult-to-hire-individuals to work in the service sector, in key areas of life, such as child care, health care and support for elderly and disabled.
The US spends less than almost all rich countries on social services for the poor and unable / disabled and gets what it pays for: the highest poverty rates among the rich countries and an exploding prison populations.
By avoiding public spending on health care, so must the United States ohio division of corporations actually much less than it pays for [ie, this system becomes ohio division of corporations more costly !!!], due to its dependence on private health care has led to a ramshackle ohio division of corporations system that leaves mediocre results, at very high costs [mortality ohio division of corporations is also higher on profit-driven hospitals than in non-profit shows Canadian ohio division of corporations research].
Articles by Sachs: "Obama, the G20, a
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