What is the optimum % of government expenditure of GDP

vivatifosi

antrobus wrote: »

According to the Stockholm International Peace Research Institute, South Korea spends 2.8% of GDP on defence, whilst the UK spend 2.3%. Which is not that massive a difference.

http://en.wikipedia.org/wiki/List_of_countries_by_military_expenditures

Oddly enough, South Korea is one of the few countries planning to increase public spending and run a larger deficit.

I think our defence spend is falling. It's splitting hairs a bit, but World Bank put it at 2.2%
http://data.worldbank.org/indicator/MS.MIL.XPND.GD.ZS

and Cameron has refused to be drawn on meeting the 2% target going forward:
http://www.telegraph.co.uk/news/politics/david-cameron/11484284/Tories-would-need-8bn-to-protect-defence-spending.html

antrobus

vivatifosi wrote: »

I think our defence spend is falling. It's splitting hairs a bit, but World Bank put it at 2.2%
http://data.worldbank.org/indicator/MS.MIL.XPND.GD.ZS

and Cameron has refused to be drawn on meeting the 2% target going forward:
http://www.telegraph.co.uk/news/politics/david-cameron/11484284/Tories-would-need-8bn-to-protect-defence-spending.html

Yes, I believe that to be correct.

The 2% target arises because it's apparently a NATO requirement, although most of its members pay no regard to it. It has long been known that the UK is likely join them sometime in the near future.

jjlandlord

Generali wrote: »

The way I see it is that all Government expenditure requires taxation and all taxation reduces economic wellbeing.

Taxation might well save your life the day you need life-saving medical treatment that you cannot afford on your own, though.

Generali

jjlandlord wrote: »

Taxation might well save your life the day you need life-saving medical treatment that you cannot afford on your own, though.

Yes it might well. That has nothing to do with the subject at hand however.

chewmylegoff

jjlandlord wrote: »

Taxation might well save your life the day you need life-saving medical treatment that you cannot afford on your own, though.

Or taxation may kill you by leaving you unable to pay for health insurance and leaving you at the mercy of the publicly funded postcode lottery health system.