Re: Signals of dampening demand

["schulte-baeuminghaus" <cresscourt@xxxxxxxxx>]

Scott,

Yours is a very useful analysis, with very pertinent questions.

<the
>high tax rates in Europe have supported more social programs that have
>produced, at least in some contexts historically, a more stable society.

To adopt the role of "stirrer", I might say that the United States
also has its "social programs", although they tend to benefit
carefully selected parts of the society.
Among the most obvious of these programs are -

(1) A massive defence syatem with huge defence industries and arms
exports, probably the most massive defence expemditure program ever
undertaken by any society in all human history - by any government,
democratic, left-wing, right-wing, dictatorial, authoritatian, etc
etc.
Some of this is of course "necessary for national security." But how
much is a "social program" chosen for a variety of reasons important
to a Republican Government but also, one would imagine, to many
Democrat supporters?

(2) Massive support for US agriculture, of the order of the subsidies
and other supports granted to farmers within the EU. Maybe bigger,
maybe a bit smaller but so massive as to provide a huge "social
program" though of benefit to particular sectors relying directly or
indirectly on agriculture.

(3) A crime/prisons/drugs system that provides jobs, avenues for
investment, demand for service industries, on such a large scale that
it amounts to a considerable "social program." Privatisation of
prisons adds to the profit opportunities and the incentive to place
more prisoners in socially-protected environments.

These are three social programs - there are no doubt several more -
that non-Americans should take into account when they are tallying up
the differences between the Americans and others, such as the
Europeans.
Would more conventional Keynesian programs yield a more beneficial
result?  If so, to whom?


James Cumes
The Bookshelf of James Cumes
http://members.chello.at/schult-baeuminghaus



----------
>From: Whitalone@xxxxxxx
>To: pkt@xxxxxxxxxxxxxxxx
>Subject: Signals of dampening demand
>Date: Sun, May 6, 2001, 5:50 am
>

> the
> high tax rates in Europe have supported more social programs that have
> produced, at least in some contexts historically, a more stable society.