Note that the U.S. has lower welfare spending, higher military spending *and* lower government spending over all than Europe. Thus if the U.S. government spent as much as the Europeans we could have just as large a welfare and a warfare state. The fact that we don't indicates that at a minimum the theory needs a few more variables.


Alexander Tabarrok Department of Economics, MSN 1D3 George Mason University Fairfax, VA, 22030 Tel. 703-993-2314

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