Low tax, Laissez-Faire, economies > ones with large public sectors
Low tax, Laissez-Faire, economies are better than ones with large public sectors This is one of the two topics that 2 readers (this one by William) requested me to talk about. The other one, requested by Sis, was already discussed here . Firstly, I'm pretty sure William was just pulling my leg here and probably wouldn't expect me to really talk about this. Well, I am...in brief hehe :) Now, my initial thought was that why can't the economy of a country be driven by both "low tax, Laissez-Faire" environment as well as "large public sector"? I don't think they are diametrically opposites. I supposed that in a Laissez-Faire environment, less regulation is needed and thus less regulators and law enforcers are needed, which in turns mean a smaller public sector. The problem with such environment is the higher potential risk of higher social cost, notably the income gap disparity and crime. So government probably has to compensate by providing secu...