The allocation of money to individuals, businesses, or statutory corporations with no payback requirements (financial assistance the government gives to eligible individuals, businesses, or statutory corporations with no payback requirements). – As soon as the state uses tax revenues to cover some or all of the costs of corporations – especially: social security, health insurance, but also allocations to local authorities, as in the case of the investment allowance to the new federal states in Germany (in the course of German re-unification in 1990) – spending increases there. This is because the state’s help now takes away the pressure to increase the efficiency of the respective system via – the precise disclosure of all individual items, – more competition, as well as – more personal participation, and thus to keep costs in check (to keep expenses in check). – See moral hazard, scholarship, subsidies. – Cf. Monthly Report of the Deutsche Bundesbank of July 2014, p. 45 (tax-financed share of statutory health insurance since 2004).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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