Milton Friedman, recipient of the 1976 Nobel Prize for Economic Science, was one of the most recognizable and influential proponents of liberty and markets in the 20th century, and the leader of the Chicago School of economics. Here he gives his views on the myth of the free lunch.
More than 67 million Americans dependent on government
Interesting charts from The Heritage Foundation: The 2012 Index of Dependence on Government
By William Beach and Patrick Tyrrell – February 8, 2012
The percentage of US citizens who do not pay federal income taxes, and who are not claimed as dependents by someone who does pay them, has climbed more than four-fold from a low of 12 percent in the late 1960s to 49.5 percent in 2009.
More than 70 percent of federal spending goes to programs that encourage dependence.
The Index of Dependence on Government multiplies each program’s yearly expenditure by its weight. The total of the weighted values is the Index score for that year. The Index is calculated using the following weights:
- Housing: 30 percent
- Health Care and Welfare: 25 percent
- Retirement: 20 percent
- Higher Education: 15 percent
- Rural and Agricultural Services: 10 percent
More than 67 million Americans receive assistance through the programs included in the Index.
If we add government employees, the number dependent on government increases to more than 91 million.
Reproduced with permission from The Heritage Foundation
Read the full report at The 2012 Index of Dependence on Government
Europe’s Last Best Chance – Michael Boskin – Project Syndicate
Reforming social-welfare benefits is the only permanent solution to Europe’s crisis. One hopes that, with the help of national governments, the European Central Bank, the International Monetary Fund, and the European Financial Stability Facility, the holes in the sovereign-debt-funding dike will be temporarily plugged, and that European banks will be recapitalized. But this will work only if structural reforms make these economies far more competitive. They must both lower the tax burden and reduce bloated transfer payments. Too many people are collecting benefits relative to those working and paying taxes.
via Europe’s Last Best Chance – Michael Boskin – Project Syndicate.