This is were income and substitution effects are useful even for business student, the preference of the median voter could be the same between America and Europe but relative prices of providing both military equipment and welfare subsidies as well as income between the two continent are definitively not. The imbalance in military power is the consequences of higher productivity and income in the us compared to Europe, and the cost of military equipment is less costly in the US than in Europe (through economy of scales see the example of the French Rafale airfighter and the Leclerc tank). Bien amicalement Bertrand Lemennicier www.lemennicier.com ----- Original Message ----- From: "fabio guillermo rojas" <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Wednesday, February 12, 2003 7:58 AM Subject: Median Voter, Welfare State and World Power
> > Bullshit or not? > > Assumption 1: There is a trade off between welfare state spending and > military spending. > > Assumption 2: The more you spend on military, the more a gov't can project > power abroad. > > Assumption 3: The Median European voter prefers more welfare state than > Americans, who prefer more military spending. > > Conclusion 1: Americans per capita get more military than Europeans. > Conclusion 2: Americans per capita are more able to project their > millitary across the globe. > Conclusion 3: Preferences for welfare state drives the power imbalance > between Europe and America. > > Fabio > > >
