E-Book Overview
Peter Lindert inquires as to whether social policies that redistribute income impose constraints on economic growth. Although taxes and transfers have been debated for centuries, only recently have we been able to obtain a clear view of the evolution of social spending. Lindert argues that, contrary to the intuition of many economists and the ideology of many politicians, social spending has contributed to, rather than inhibited, economic growth. Peter Lindert is a prize-winning researcher and teacher at the University of California-Davis where he serves as President of the Economic History Association and as Co-Editor of its journal. His textbooks in international economics have been translated into at least eight other languages, and he has previously taught at the University of Essex, Harvard University, Moscow State University, and University of Wisconsin.
E-Book Content
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Growing Public Social Spending and Economic Growth Since the Eighteenth Century Growing Public explores the links between economic growth and social policies that redistribute income. Taxes and transfers have been debated for centuries, but only now can we get a clear view of the whole evolution of social spending. What kept prospering nations from using taxes for social programs until the end of the nineteenth century? Why did taxes and spending then grow so much, and what are the prospects for social spending in this century? Why did North America become a leader in public education in some ways and not others? Lindert finds answers in the economic history and logic of political voice, population aging, and income growth. Contrary to traditional beliefs, the net national costs of government social programs are virtually zero. This book not only shows that no Darwinian mechanism has punished the welfare states, but, it uses history to explain why this surprising result makes sense. Contrary to the intuition of many economists and the ideology of many politicians, social spending has contributed to, rather than inhibited, economic growth. Peter H. Lindert is Distinguished Professor of Economics at the University of California, Davis, and a research associate of the National Bureau of Economic Research. His writings have touched on a wide range of economic and historical topics relating to Europe, the United States, China, Indonesia, and the global economy. His textbooks in international economics have been translated into eight other languages.
Advance praise for Growing Public
“Peter Lindert has written a dazzling book. He takes on one of the grand topics of economics – the rise of social spending – and offers us a remarkable combination of new data, historical insight, political analysis, and economic assessment. Amazingly, Lindert comes up with fresh, convincing, and important insights on issues that have been debated for decades. Two of Lindert’s major conclusions are that the spread of democracy has historically played a pivotal role in the rise of social expenditures; and that social spending has not gravely weakened economic incentives and long-term economic growth, despite the drumbeat of criticisms from free-market devotees. Indeed Lindert concludes that ‘the net national costs of social transfers, and of the taxes that finance them, are essentially zero.’ This powerful book will be widely read and debated for many years to come.” – Jeffrey D. Sachs, Director, The Earth Institute at Columbia University “What determines social spending, also known as public education, also known as social security, also known as taking from the rich and giving to the poor? This question is the subject of much theoretical and empirical speculation and some moderately detailed previous work. Yet this magnificent summa by Peter Lindert blows away the field. He probes the historical and comparative rise of social sp