Welfare States

    Dispatch From Lisbon

    By: Repair_Man_Jack (Diary)  |  November 27th at 10:45 AM  | 

    “There appears to be an enormous divergence between what the Portuguese believe the state should deliver and the amount of taxes they are prepared to pay,” he told parliament recently.

    – Vítor Gaspar, Portuguese Minister of Finance (HT: Ft.com)

    It helps from time to time to get out that old set of notes from Economics 101 and give them a snappy re-read. On day 1 of the class, you get introduced to The Fundamental Problem of Economics. This cute little chestnut states that economics attempts to meet insatiable demand with limited resources. No feasible solution exists that is also optimal. The debate thus ensues over who gets fed and who gets (expletived).

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