Op-Ed Contributor - The G.D.P. Question - NYTimes.com
I liked the data rich nature of this piece on comparative government spending as a share of GDP.
His point taken, I wonder why he did not discuss the possibility of government continuing to to provide the same level of service while reducing the cost of these services as is currently being suggested for shifting the balance of cost towards preventive health care that will substantially reduce curative costs down the road. Krugman's piece today seems to show that is where the gov't is going.
Where are the statistics showing that European countries spend less on healthcare for better results as as measured by life expectancy? That France has the best health care system of OECD countries?
However one central point that the data provided shows but that the author did not notice is how Government share of GDP is correlated with population density. And this to me is one more illustration of my little holistic theorem applied here:
"The more people participate in a system, the more it makes sense for a central authority to mediate their relationships/communication; No matter what the cost for setting up this central authority, as the number of participants increase, this cost is dwarfed by the benefits of centralized mediation on a linear vs. quadratic basis."
See my proposal for centralized clearing of derivatives that underscores this analysis.
Uploaded on authorSTREAM by kongtcheu
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