properal
Property is Peace 1 day ago · edited 1 day ago
That is a different subject, moderate left-liberal/ centrist/ or neoliberal , generally are less concerned about how voluntary society is and more concerned about outcomes, but since you asked.
Even Social Democracy slows economic growth.
Many critics of free markets point to the fact that there is a strong positive correlation between government size and GDP per capita growth as evidence that government is necessary to foster economic growth.
Yet the wealthy countries of the world became wealthy before they had large governments and no nation became rich with big government.
Small Government Is the Recipe for Creating Rich Nations
The reason there is a strong positive correlation between government size and GDP growth is that poor nations can't support big government. So if poor nations are included in studies it makes it look like there is a positive correlation between government size and growth. Of course it is obvious that poor nations can't support big government. The analogy is unhealthy hosts can only support small parasites. Healthy hosts can support larger parasites.
If only rich countries are included we can see a significant correlation between government size lower annual growth rate.
Government Size and Growth: A Survey and Interpretation of the Evidence by Andreas Bergh and Magnus Henre
Abstract: The literature on the relationship between the size of government and economic growth is full of seemingly contradictory findings. This conflict is largely explained by variations in definitions and the countries studied. An alternative approach – of limiting the focus to studies of the relationship in rich countries, measuring government size as total taxes or total expenditure relative to GDP and relying on panel data estimations with variation over time – reveals a more consistent picture: The most recent studies find a significant negative correlation: An increase in government size by 10 percentage points is associated with a 0.5 to 1 percent lower annual growth rate. We discuss efforts to make sense of this correlation, and note several pitfalls involved in giving it a causal interpretation. Against this background, we discuss two explanations of why several countries with high taxes seem able to enjoy above average growth: One hypothesis is that countries with higher social trust levels are able to develop larger government sectors without harming the economy. Another explanation is that countries with large governments compensate for high taxes and spending by implementing market-friendly policies in other areas. Both explanations are supported by ongoing research.
Here is another study that shows the same results though the authors seem unhappy with their findings because they assert the results are due to endogeneity and reverse causality problems:
Does Government Size Affect Per-Capita Income Growth? A Hierarchical Meta-Regression Analysis
Abstract: Since the late 1970s, the received wisdom has been that government size (measured as the ratio of total government expenditure to gross domestic product (GDP) or government consumption to GDP) is detrimental to economic growth. We conduct a hierarchical meta-regression analysis of 799 effect-size estimates reported in 87 primary studies to verify if this assertion is supported by existing evidence. Our findings indicate that the conventional prior belief is supported by evidence mainly from developed countries but not from less developed countries. We argue that the negative relationship between government size and economic growth in developed countries may reflect endogeneity bias.
Inequality is higher in countries with a bigger welfare state
Private wealth across European countries: the role of income, inheritance and the welfare state
The measured inequality of wealth is higher in countries with a relatively more developed welfare state. Why is this the case? The substitution effect of welfare state expenditures with regard to private wealth holdings is significant along the full net wealth distribution, but is relatively lower at higher levels of net wealth. Given an increase in welfare state expenditure, the percentage decrease in net wealth of poorer households is relatively stronger than for households in the upper part of the wealth distribution. This finding implies that given an increase of welfare state expenditure, wealth inequality measured by standard relative inequality measures, such as the Gini-coefficient, ECB Working Paper 1847, September 20152 will increase.
Social Security Expenditure and Net Wealth bottom 25th percentile
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properal
Property is Peace 1 day ago · edited 1 day ago
As soon as you get them to admit they are willing to sacrifice growth you have gotten them to at least partially admit they are willing to sacrifice economic success for their own agenda. Yet the data shows overwhelming the economic growth correlates with reducing poverty. Also, In the US reductions in poverty leveled off with the introduction of the welfare state. So you should be able to sow some doubt in their own claims.
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