The welfare state has begun harming its competitive and productive abilities through persistent increases in tax, the inability to deal with the demographic changes, and the loss of innovation and dynamic solutions.
The welfare state is important to keep capitalism civilised, to reduce inequality caused by it, and to keep it (capitalism) compatible with democracy
Democracy and capitalism function according to different dynamics. A spillover from one system into the other –capitalism into politics (like in the USA), or when politics tries to control the economy – leads to overall systemic damage.
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Written using ideas and inspiration from a "brand eins" magazine edition
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