Debt, Democracy and the Welfare State: Are Modern Democracies Living on Borrowed Time and Money? (Palgrave Pivot)

Argues that government debt in the developed world has risen to world war proportions in a time of peace because of welfare expenditures in excess of what tax revenues allow. Examines the willingness or unwillingness of democratic leaders to balance taxes and public spending and looks at the possible increase of private financing of public services. Why is it that government debt in the developed world has risen to world war proportions in a time of peace? This can largely be attributed to governments maintaining welfare expenditures beyond what tax revenues allow. But will these governments refrain from doing what is necessary for economic growth for fear of losing their electorate? Why is it that government debt in the developed world has risen to world war proportions in a time of peace? This can largely be attributed to governments maintaining welfare expenditures beyond what tax revenues allow. But will these governments refrain from doing what is necessary for sustainable economic growth for fear of losing their electorate? In this book, Hannesson examines the current public debt crises of both small and large democracies in terms of the inability or unwillingness of democratic leaders to balance taxes and public spending. It explores crucial issues involved in the financing of the welfare state addressing how governments should go about balancing public service spending, alongside private sector contributions Front Matter....Pages i-vi The Rising Tide of Debt....Pages 1-14 Why Has Government Debt Increased?....Pages 15-29 The Cost Disease of Public Services....Pages 30-43 The Welfare State: Insurance or Redistribution?....Pages 44-59 Democracy and Enlightened Authoritarianism....Pages 60-76 The European Union: A Viable Colossus?....Pages 77-85 How Sweden Got Out of the Debt Trap....Pages 86-95 Conclusion....Pages 96-102 Back Matter....Pages 103-115 "Cover"--"Half-Title" -- "Title" -- "Copyright" -- "Contents" -- "1 The Rising Tide of Debt" -- "2 Why Has Government Debt Increased?" -- "3 The Cost Disease of Public Services" -- "4 The Welfare State: Insurance or Redistribution?" -- "5 Democracy and Enlightened Authoritarianism" -- "6 The European Union: A Viable Colossus?" -- "7 How Sweden Got Out of the Debt Trap" -- "8 Conclusion" -- "Appendix: Data Sources" -- "Literature"