One of these days, we’re going to come to our economic senses. Soon, I hope.
And I’ve even explained that the welfare state has a negative impact on savings and wealth accumulation (these dramatic charts show Social Security debt in America compared to ever-growing nest eggs in Australia’s private pension system).
But if new research from the European Central Bank (ECB) is any indication, I should be giving more emphasis to this final point.
Culling from the abstract, here’s the key finding from the working paper by Pirmin Fessler and Martin Schürz.
…multilevel cross-country regressions show that the degree of welfare state spending across countries is negatively correlated with household net wealth. These findings suggest that social services provided by…
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