We've come a long way since Otto von Bismarck designed the first welfare programs in Europe in the 19th century. He also transformed the German character to one of a highly militarized and organized one. Other nations soon jumped on the band wagon and we then moved from a welfare society to a welfare state. The costs associated with a generous welfare state are a growing concern.
This may come as a surprise to some of you but I don't "hate" the welfare state. I'm just concerned about its growth. The welfare state, it seems, has become a means to an end where the state has decided it must involve itself in large parts of the economy and private lives.
I don't subscribe to some of the criticisms against the welfare state like it "creates lazy people." I think most people have enough pride and self-worth to use welfare as a means to get themselves up and running again. It's a shame some game the system contributing to waste, but just like I don't like capitalism getting whipped based on the actions of a few, it's only fair to assert social programs shouldn't be abolished because of some lazy, moron.
While I would like to believe the welfare state leads to lower national incomes, there isn't evidence of that...yet. The closest thing to it is the Pareto improvement. Inefficiencies - however you desrcibe them - happen in both the public and private sectors. Which is worse?
Sweden is over taxed but still functions although the alarm bells are ringing. Which brings me to taxes. Western countries (excluding Switzerland) tax anywhere between 30% and 60% of personal income. When you cross the 50% line is it unreasonable to think the state is slowly taking over?
That being said, I'd still prefer less interventionism. 50% of personal income going to the state is high for my taste. It's how I'm wired.
No comments:
Post a Comment
Mysterious and anonymous comments as well as those laced with cyanide and ad hominen attacks will be deleted. Thank you for your attention, chumps.