Social Spending and Inequality

This is material I’ve covered before in a somewhat different form, but let it be said again—you can reduce inequality by having your government spend more on social services:

I think the links between taxation, spending, and inequality are the most plausible explanation of the fact that the highest-taxed countries are the happiest. It can’t be that paying taxes makes Danes happy. But plausibly, living in a relatively egalitarian society makes people happy.