European spending, taxing, redistribution and Stateism have many costs beyond healthcare: Economic Freedom Indexes: <link> " What does research tell us about the best balance between economic liberty and socialist quasi-slavery? <link> The indices of economic freedom attempt to measure (free market) economic freedom, and empirical studies based on these rankings have found them to be correlated with higher living standards, economic growth, income equality, less corruption and less political violence. For a sample example, see:
The Path To Sustainable Growth, Lessons From 20 Years Growth Differentials In Europe: (<link>)"Big government" is the main cause of Europe's weak performance. The oversized Public-Sector lacks productivity and undoes the entire productivity gains of the Private Sector, eradicating all of its outstanding performance and productiveness. Europe can improve its overall performance by copying the Irish success formulas: Scaling down Public Spending, downsizing bureaucracy, and shifting the tax burden from income on consumption. This book demonstrates why the Lisbon Agenda and decades of Keynesian inflationist demand stimulation have failed. It develops alternative and workable supply-side strategies as well as effective cures for humane growth and a financially sustainable social security.The main conclusion is that two factors of the public policy mix cause weak growth performances: excessive public spending and a demotivating tax structure, on the one hand, and over- consumption with a lack of savings and investment on the other hand. We conclude that the public sector in most European countries is far too large, depriving the private sector of the recourses to realize its full wealth potential.
US Joint Economic Commission: <link> -Government serves many useful functions, including some economic ones. The findings here support the view that the growth of government in newly emerging nations and economies tends to increase output. Presumably this reflects the reduction in transactions' costs and the improved environment for investment associated with a rule of law and enforceable property rights. At the same time, in modern times relative American federal government spending has expanded rapidly, reflecting sharp increases in transfer payments. The evidence suggests that large transfer payments in particular have negative consequences for growth. The results for the federal government are confirmed for state and local governments and several other countries. The findings suggest that a federal budget strategy of constraining spending growth below output growth, with particular attention paid to constraining transfer payments, would have positive effects on economic growth.
Economic Freedom Indexes: <link> "Public spending" or "Government size" or taxation" is different than "economic freedom." The curve shows that governments mostly tax, redistribute and spend themselves into economic destruction - even in nations with high degrees of economic freedom. The curve proves taxation, redistribution, and government size hinders economic growth in most Western nations because most nations tax their populations too much for optimal tax rates. The study tries to find the optimal tax rate which generates the most tax revenues. I would prefer to have less revenues and smaller government over the optimal rate.
The Scandinavian Nanny State: <link> - lists of countries of the world sorted by their gross domestic product (GDP) at purchasing power parity (PPP) per capita,- 2007. The relatively homogeneous European nations that do well on the Transparency and Economic Freedom scales have lower corporate taxes rates than the US (to keep businesses in country) coupled with much higher personal income rates (than the US) to fund their welfare states. Norway is a tiny nation, far more homogenous than the US, which can more efficiently educate its population. The creative destruction of capitalism requires the “flexibility” of a relatively well educated populous, where people can change jobs at will. To be succinct, the Norwegian economic model would not work in a large diverse nation with 300 million people, including 40 people million who not speak English.
Very recommended links:
1. 5% growth is no utopia. Causes of Growth differentials in europe. (Abstract WFA Study)
2. Causes of Growth Differentials in Europe: (Full Report of the WFA Study):
3. The myth of the Scandinavian Model. (The Brussels Journal)
4. Europe's Ailing Social Model: Fairy-Tale & Facts
5. Can we still avoid Inflation ( Friedrich A. Hayek on inflationary policies )
6. The Swedish model: Admire the best, forget the rest (The Economist)
7. Decay and the welfare state, Time to Reevaluate the European Social Model. Has the time come? (FT)
8. Dr Robert A. Mundell's Nobel Prize Lecture: "A Reconsideration of the 20th Century" claiming that Supply Side Economics leads to growth and price stability.
9. THE PATH TO SUSTAINABLE GROWTH - Lessons From 20 Years Growth Differentials In Europe.
More Research on Europe:
1. Is Europe Doomed to Continued Economic Stagnation? <link> Europe suffers from particular weaknesses. 2007 Index of Economic Freedom says, "Europe suffers from the second-worst regional score in labor freedom and is dead last in fiscal freedom from government.… [S]trong state sectors and rigid labor markets have already prompted significant social turmoil, not least in France."
2. Jean-Claude Trichet, "The Need for Structural Reforms in Europe," lecture to the Lisbon Council, June 4, 2007, at www.ecb.eu/press/key/date/2007/html/sp070604.en.html#fnid2 (June 7, 2007).
3. OpenEurope, "ICM Survey of Chief Executives for Open Europe," at www.openeurope.org.uk/research/businesspres.pdf
4. "The Road to Hell Was Paved with Good Intentions," The European Journal, March/April 2006, pp. 19–21, at <link>
5. Sean Dorgan, "How Ireland Became the Celtic Tiger," Heritage Foundation Backgrounder No. 1945, June 23, 2006, at <link>.
As for further evidence that the New Deal failed see these articles:
1. FDR's policies prolonged Depression by 7 years, UCLA economists calculate
Why the New Deal Failed
2. <link>
3. FDR's programs didn't succeed in pushing unemployment below 20 percent.
4. New Deal or Raw Deal?: How FDR's Economic Legacy Has Damaged America."
5. Cato's Jim Powell makes the case against the New Deal.
"We have tried spending money. We are spending more than we have ever spent before and it does not work.…I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises….I say after eight years of this Administration we have just as much unemployment as when we started. ... And an enormous debt to boot!" - Henry Morgenthau Jr. (May 9, 1939,) -- pal, lunch companion and loyal secretary of the Treasury to President Franklin D. Roosevelt.
"I have never seen an economist lay out a case that the New Deal succeeded." – (<link>) Library of Economics