Could a Nordic style welfare state work better if country A export more to other countries or though tariffs?
If a country like Norway exports more in what it makes or does than it takes in,could welfare entitlements be not all disruptive to the economy due to the fact Peter isn't robbing Paul so much as taking money from someone else from the outside world?
Economics - 1 Answers
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No, I doubt it. The nordic style welfare works because it is run efficiently. Increasing tarriffs will reduce the income of the nation, making the welfare more difficult to finance. The better way to finance the welfare is to increase productivity within the nation. Efficient markets, well run government programs, investment in education; these are the policies that make welfare programs more affordable.
