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.

Alex

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

Web Page: http://mason.gmu.edu/~atabarro/
and
Director of Research The Independent Institute 100 Swan Way Oakland, CA, 94621 Tel. 510-632-1366



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