Because defending every line item of welfare spending isn't credible in the current economic environment.
The year 1975 constituted a critical crossover point for social welfare spending in two ways.
FORBES: Memo To The President: We Can't Tax, Spend And Print Our Way To Prosperity
Social Welfare Spending is displayed along the horizontal axis and Net Private Investment on the vertical axis.
FORBES: Memo To The President: We Can't Tax, Spend And Print Our Way To Prosperity
However, once social welfare spending rises above 10% of personal income, the decline in new investment is dramatic.
FORBES: Memo To The President: We Can't Tax, Spend And Print Our Way To Prosperity
He used to talk about ending Slovakia's flat tax, stoking welfare spending and intervening more in the economy.
It may be smaller than the present gap, but it will still have a big impact on welfare spending.
But since oil revenues pay for around half of the government's budget, this has not prevented cuts in welfare spending.
Since the beginning of the Great Recession of 2007, social welfare spending has exploded upward beyond 17% of personal income.
FORBES: Memo To The President: We Can't Tax, Spend And Print Our Way To Prosperity
Mr Osborne also said that, if not curbed, welfare spending would consume one third of public spending within three years.
The relationship between social welfare spending and net private domestic investment since the end of World War II tells a troublesome tale.
FORBES: Memo To The President: We Can't Tax, Spend And Print Our Way To Prosperity
Only they can decide on the proper balance between social protections, welfare spending, infrastructure investment, regulations and the appropriate burden of taxation.
Under 10% of personal income, social welfare spending has no discernible effect on net new investment as shown by the horizontal best-fit line.
FORBES: Memo To The President: We Can't Tax, Spend And Print Our Way To Prosperity
She argued that they should allow "automatic stabilisers" -- higher welfare spending and lower tax revenues -- to kick in if the economy deteriorated.
By contrast, the unemployed account for only 9% of welfare spending.
But Mr Hollande will have to countenance reform all the same, because he needs a credible medium-term plan to pay for welfare spending without resorting to borrowing.
That was partly because, after wars and the Depression, European societies made redistribution their priority, but also because the recipients of welfare spending became powerful interest groups.
In short, by implementing anti-deflation and economic growth-stimulating deregulation, while holding down increases in social welfare spending, above-listed objectives 1. and 2. can be realized without increasing taxes.
The DPJ promised more welfare spending and a better social safety net, but has struggled to deliver amid the economic downturn and 11 March 2011 earthquake and tsunami.
They have both promised to boost social welfare spending, close the gap between the rich and poor and rein in the country's family-run giant conglomerates, known as chaebol.
Minimum wages, they argue, can save money on welfare spending.
Other welfare spending on the better-off should be cut back.
Welfare spending, which consumes a third of public funds, is 11% higher than in England and is rising faster as a share of public expenditure than any other category.
Handouts to consumers through tax cuts and welfare spending thus make sense in the short run, so long as India's already-stretched public finances are repaired when the crisis abates.
Against that, Portugal has done more to trim its public sector than Greece and Spain and more to reform its pensions than Italy, and recently froze welfare spending until 2013.
The relationship between the two is represented by the straight lines estimated to give the best fits between the data before and after social welfare spending reaches 10% of personal income.
FORBES: Memo To The President: We Can't Tax, Spend And Print Our Way To Prosperity
Many countries, particularly within the eurozone, have been cutting back hard on welfare spending in an attempt to reduce debt and balance government books as tax revenues fall because of weak growth.
Even without the liabilities of Northern Rock and other banks rescued by the government, public debt is clearly going to smash through the 40% ceiling as tax revenues swoon and welfare spending rises.
Indeed, over the past 2 decades, total welfare spending has been growing faster than Social Security and Medicare, about twice as fast as education, and nearly 3 times as fast as national defense.
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