Earlier quoted context omitted.
> So on that count Americans do appear to be richer, assuming of course they are getting equal average amounts of education and healthcare on their private purchases as the Europeans are getting on their tax dollars. That assumption is rather dodgy on a couple of points. One is that a lot of healthcare and education in the US is tax-supported. Another is that a rational person may choose to spend money on things othe…
>That assumption is rather dodgy on a couple of points. I thought so too, that is why I pointed it out. >One is that a lot of healthcare and education in the US is tax-supported. It may very well be but less of it is compared to Scandinavia so the point is the same. >Another is that a rational person may choose to spend money on things other than healthcare and education. Forcing them to spend it on healthcare and ed…
Actually you can. That's part of the deadweight loss of taxation: you are forced to spend money on stuff you don't want and are unable to spend on stuff you do want.
If person X would choose to spend $100 on an ipod, but is instead forced to spend $100 on education which they only value at $80, they have lost $20 of value.
Now, in a democracy, people in the situation of person X may only make up 50% - 1 of the population, but that doesn't change the fact that they lose.