Why is it that government debt in the developed world has risen to world war proportions in a time of peace? This can largely be attributed to governments maintaining welfare expenditures beyond what tax revenues allow. But will these governments refrain from doing what is necessary for economic growth for fear of losing their electorate?
Rögnvaldur Hannesson is Professor Emeritus of Economics at the Norwegian School of Economics, Bergen. He has published over 100 articles in professional journals, as well as several books, including Ecofundamentalism: A critique of Extreme Environmentalism, The Privatization of the Oceans, and Investing for Sustainability: The Management of Mineral Wealth.
1. The Rising Tide of Debt 2. Why has Government Debt Increased? 3. The Cost Disease of Public Services 4. The Welfare State: Insurance or Redistribution? 5. Democracy and Enlightened Authoritarianism 6. The European Union: A Viable Colossus? 7. How Sweden Got Out of the Debt Trap 8. Conclusion Appendix - Data Sources Literature