It is worth remembering one thing. When you combine private charity + state welfare, America transfers more per capita than Europe (see below). In this fact lies the true question we should ask ourselves -- is the welfare state's function to create equality or to fight poverty.
If the former, then Europe is the way and the cost is slower growth because of higher taxes. If its the latter, America is the way and you get more growth (and reduce inequality if only as a byproduct of the poverty reduction).
Few want to make that distinction. And that includes people I tend to agree with. And not only that, but you accept the fact that few people get -- private charity is a complement to state charity in many dimensions of life (not all) where the state is simply unable (because of the nature of bureaucracies and their incentives) to tailor help in ways that are efficient.
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Tony Annett
@tonyannett
The Piketty school (Blanchet, Chancel, and Gethin) shows that the American welfare state transfers more income than in Europe (largely because Europe relies on regressive VATs and social contributions). But the US is still more unequal - due to market outcomes. x.com/vincentgeloso/…
