The welfare state, which is densely regulated in Europe today, establishes entitlements without a basis: it makes the individual independent of – an employer as well as – his own performance. This is even the central idea of the welfare state. However, this blocks the individual’s contractual access to the only force helpful to him in shaping his economic life, namely the entrepreneur, who tries new ways to make money in the market. – Therefore, more welfare state inevitably leads – to ever greater unemployment, – to a growing tax burden with the consequence of an exodus of capable workers as well as companies abroad, – to rising government spending (in the 2013 federal budget about fifty-seven percent of spending) and – in the end to inflation. – See tax ratio, adjustment inflation, mandatory, citizen’s income, third-gate money, day care for children, debt ratio, government, tax burden ratio, subsidiarity principle, Stability and Growth Pact, tax burden ratio, sustainability of public finances, transfer payments, constitutional article one, Wagner’s law, second-gate money.
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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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