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What should the government be spending its money on? So in those countries, social services are making up ~25 percent of government spending. But that includes

What should the government be spending its money on? So in those countries, social services are making up ~25 percent of government spending. But that includes healthcare and jobs programs, which are services that should directly bolster the larger economy by creating a healthy and more mobile workforce. Meanwhile the US government spends about 35% of our GDP in a good year [1], and it is well known that over half of that goes to social security, medicare, and a smaller amount to housing. [2] My only point is that it is easy to see that graph you posted and think that things are out of control, but the reality is just that in a post-war, urbanized, liberal society the governments job is to serve the people and sometimes that means spending money on them. I know surely none of us here will ever take adventage of medicare or social security in our old age. We will not be hiring students who went to state-funded schools (ew) or who live in subsidized housing--if they are that poor they can't work for me! But normal pepole actually do sometimes get help from the government and it is fine. [1] https://tradingeconomics.com/united-states/government-spending-to-gdp https://tradingeconomics.com/united-states/government-spendi... [2] https://www.nationalpriorities.org/budget-basics/federal-budget-101/spending/ https://www.nationalpriorities.org/budget-basics/federal-bud...

ETH_start 2y ago
Government spending as a share of GDP is increasing. The main issue is this, not what the government is spending on. Increasingly taxing people to subsidize other people, through large government bureaucracies with a monopoly on those tax dollars, leads to slower economic growth. Picketty is ignoring the elephant in the room when trying to identity the cause of European economic sluggishness. And if you want people's quality of life to improve, reduce their tax burdens and lift regulatory restrictions on their business activities, so that they can serve consumers more effectively by investing more of their time and money creating firms that cater to them.
- tharmas 2y ago
  Heavily tax speculation and heavily reduce taxes on productive activities.
  - jandrewrogers 2y ago
    > Heavily tax speculation Like startups?
    - rickydroll 2y ago
      Like most financial engineering. Put a tax on every transaction
      - ETH_start 2y ago
        This reduces economic coordination, which makes the economy less productive.
        rickydroll 2y ago
        Reduces economic coordination? Do you mean collusion? Price-fixing? Yes, there are advantages and disadvantages to financial transaction taxes. I like them because they are progressive and reduce the profitability of share flipping. In theory, they would also reduce high-frequency trading, which seems like it's casino adjacent.
        ETH_start 2y ago
        Transactions are not needed for collusion or price-fixing. Those happen through regular communication channels. Economic coordination happens through price signals and commercial exchange. The more friction is attached to commercial exchange, the less people trade, and the fewer opportunities to coordinate for the benefit of all involved parties can be exploited. In other words, taxing transactions reduces division of labor, which is one of the main sources of productivity: https://en.wikipedia.org/wiki/Division_of_labour https://en.wikipedia.org/wiki/Division_of_labour
    - tharmas 2y ago
      Are startups not "productive activities"? I said to REDUCE taxes on productive activities which in my definition includes Startups. Perhaps my definitions of "speculation" and "productive activities" go against conventions?
lurking15 2y ago
> spending _its_ money They're spending everyone's money. How about we don't enslave people to their government and simply leave us all to spend our own money and resources how we see fit. Don't give me any nonsense about the social contract or democracy. The government has grown beyond any reasonable remit it was granted and is enriching itself or investing in failed programs.
- tokyolights2 2y ago
  Where do you think that money comes from and what gives it value? Your bank account is full of your governments' money...
  - lurking15 2y ago
    > what gives it value? scarcity, for most people it's a representation of their labor valued on a market which in a fundamental way represents the energy they express insofar as government whips it up out of thin air, they're stealing from everyone that's accumulated money in any degree and debasing their wages

ETH_start 2y ago

Government spending as a share of GDP is increasing. The main issue is this, not what the government is spending on. Increasingly taxing people to subsidize other people, through large government bureaucracies with a monopoly on those tax dollars, leads to slower economic growth. Picketty is ignoring the elephant in the room when trying to identity the cause of European economic sluggishness. And if you want people's quality of life to improve, reduce their tax burdens and lift regulatory restrictions on their business activities, so that they can serve consumers more effectively by investing more of their time and money creating firms that cater to them.

tharmas 2y ago
Heavily tax speculation and heavily reduce taxes on productive activities.
- jandrewrogers 2y ago
  > Heavily tax speculation Like startups?
  - rickydroll 2y ago
    Like most financial engineering. Put a tax on every transaction
    - ETH_start 2y ago
      This reduces economic coordination, which makes the economy less productive.
      - rickydroll 2y ago
        Reduces economic coordination? Do you mean collusion? Price-fixing? Yes, there are advantages and disadvantages to financial transaction taxes. I like them because they are progressive and reduce the profitability of share flipping. In theory, they would also reduce high-frequency trading, which seems like it's casino adjacent.
        ETH_start 2y ago
        Transactions are not needed for collusion or price-fixing. Those happen through regular communication channels. Economic coordination happens through price signals and commercial exchange. The more friction is attached to commercial exchange, the less people trade, and the fewer opportunities to coordinate for the benefit of all involved parties can be exploited. In other words, taxing transactions reduces division of labor, which is one of the main sources of productivity: https://en.wikipedia.org/wiki/Division_of_labour https://en.wikipedia.org/wiki/Division_of_labour
  - tharmas 2y ago
    Are startups not "productive activities"? I said to REDUCE taxes on productive activities which in my definition includes Startups. Perhaps my definitions of "speculation" and "productive activities" go against conventions?

lurking15 2y ago

> spending _its_ money They're spending everyone's money. How about we don't enslave people to their government and simply leave us all to spend our own money and resources how we see fit. Don't give me any nonsense about the social contract or democracy. The government has grown beyond any reasonable remit it was granted and is enriching itself or investing in failed programs.

tokyolights2 2y ago
Where do you think that money comes from and what gives it value? Your bank account is full of your governments' money...
- lurking15 2y ago
  > what gives it value? scarcity, for most people it's a representation of their labor valued on a market which in a fundamental way represents the energy they express insofar as government whips it up out of thin air, they're stealing from everyone that's accumulated money in any degree and debasing their wages