How EC works
  • Introduction
  • How the Economic Machine Works
    • How the Economic Machine Works: “A Transactions-Based Approach”
    • How the Market-Based System Works
    • The Template: The Three Big Forces
    • 1) Productivity Growth
    • 2) The Long-Term Debt Cycle
    • 3) The Short-Term Debt Cycle
  • Debt Cycles: Leveragings & Deleveragings
    • An In-Depth Look at Deleveragings
    • The Ugly Deflationary Deleveragings
    • The Beautiful Deleveragings
    • The Ugly Inflationary Deleveraging
    • A Closer Look at Each
      • United States Depression and Reflation, 1930-1937
      • Japan Depression and Reflation, 1929-1936
      • UK Deleveraging, 1947-1969 UK Deleveraging,1947-1969
      • Japan Deleveraging, 1990-Present
      • US Deleveraging, 2008-Present
      • The Recent Spain Deleveraging, 2008-Present
      • Germany’s Weimar Republic: 1918-23
    • US Deleveraging 1930s
      • Preface
      • Conditions in 1929 Leading up to the Crash
      • 1H1930
      • 2H1930
      • 1Q1931
      • 2Q1931
      • 3Q1931
      • 4Q1931
      • 1H1932
      • 2H1932
      • 1933
      • March 1933
      • 1934-1938
    • Weimar Republic Deleveraging 1920s
      • Overview
      • World War I Period 1914 – November 1918
      • Post-War Period November 1918 - December 1921
      • Hyperinflation
      • Second Half of 1922
      • 1923
      • Stabilization: From Late 1923 Onward
  • Productivity and Structural Reform: Why Countries Succeed & Fail, and What Should Be Done So Failing
    • Part 1: The Formula for Economic Succes
      • A Formula for Future Growth
      • Projections
      • Productivity and Competiveness Measures
      • Our Productivity Gauge
      • Value: What You Pay Versus What You Get
      • A Simple Measure of Cost: Per Capita Income
      • Education
      • Cost of a Productivity Adjusted Educated Worker
      • Working Hard
      • Working Hard Subcomponent: Average Hours Worked
      • Working Hard Subcomponent: Demographics
      • Investing
      • Investing Subcomponents: Aggregate Fixed Investment Rates
      • Investing Subcomponents: Household Savings Rates
      • Culture Components
      • Self-Sufficiency
      • Self-Sufficiency Subcomponent: Work Ethic
      • Self-Sufficiency Subcomponent: Work Ethic - Average Hours Worked
      • Self-Sufficiency Subcomponent: Work Ethic – Labor Force Participation
      • Self-Sufficiency Subcomponent: Work Ethic – Actual Vacation Time
      • Self-Sufficiency Subcomponent: Work Ethic – Retirement Age as Percentage of Life Expectancy
      • Self-Sufficiency Subcomponent: Government Supports
      • Self-Sufficiency Subcomponent: Government Supports – Government Expenditures
      • Self-Sufficiency Subcomponent: Government Supports – Transfers to Households
      • Self-Sufficiency Subcomponent: Labor Market Rigidity
      • Self-Sufficiency Subcomponent: Labor Market Rigidity – Unionization
      • Self-Sufficiency Subcomponent: Labor Market Rigidity – Ease of Hiring and Firing
      • Self-Sufficiency Subcomponent: Labor Market Rigidity – Minimum Wage as Percentage of Average Income
      • Savoring Life Versus Achieving
      • Savoring Life Versus Achieving Subcomponents: Observed Outcomes
      • Savoring Life Versus Achieving Subcomponent: Expressed Values
      • Innovation and Commercialism
      • Innovation and Commercialism Subcomponent: Outputs
      • Innovation and Commercialism Subcomponent: Inputs
      • Bureaucracy
      • Corruption
      • Rule of Law
      • Our Indebtedness Gauge
      • Debt and Debt Service Levels
      • Debt Flow
      • Monetary Policy
      • Summary Observations
    • Part 2: Economic Health Indices by Country, and the Prognoses That They Imply
      • India's Future Growth
      • China's Future Growth
      • Singapore's Future Growth
      • Mexico's Future Growth
      • Thailand's Future Growth
      • Argentina's Future Growth
      • Korea's Future Growth
      • Brazil's Future Growth
      • USA's Future Growth
      • United Kingdom's Future Growth
      • Russia's Future Growth
      • Australia's Future Growth
      • Canada's Future Growth
      • Germany's Future Growth
      • France's Future Growth
      • Hungary's Future Growth
      • Spain's Future Growth
      • Japan's Future Growth
      • Italy's Future Growth
      • Greece's Future Growth
      • Appendix: List of Statistics that Make Up Our Gauges
    • Part 3: The Rises and Declines of Economies Over the Last 500 Years
Powered by GitBook
On this page
  1. Productivity and Structural Reform: Why Countries Succeed & Fail, and What Should Be Done So Failing
  2. Part 1: The Formula for Economic Succes

Self-Sufficiency Subcomponent: Government Supports – Transfers to Households

PreviousSelf-Sufficiency Subcomponent: Government Supports – Government ExpendituresNextSelf-Sufficiency Subcomponent: Labor Market Rigidity

Last updated 7 years ago

Household transfers are a direct subsidy and have an especially high risk of undermining self-reliance. The policy highlights the tradeoff of enforcing a market-based system to maximize growth versus risking slower growth to achieve a different goal, like ensuring a social safety net for ethical reasons or for social stability. On this measure, we see that India’s and China’s governments are the least redistributive, by our measures. In both countries transfers to households are around 5% of GDP. Transfers in the US and Japan are about four times larger, around 20% of GDP, but still much lower relative to the rest of the developed world. In Western Europe, transfers range from a bit under 25% to nearly 30% in France.

家庭转移是直接补贴,特别是破坏自力更生的高风险。该政策强调了实施基于市场的制度的最大化增长的权衡,而不是放慢增长的风险,以实现不同的目标,例如为了道德原因或社会稳定确保社会安全网。在这个措施上,我们看到印度和中国的政府是通过我们的措施来重新分配的。在这两个国家,转移到家庭的国内生产总值约占5%。在美国和日本的转移幅度大约是国内生产总值的20%左右,但相对于发达国家的转移仍然要低得多。在西欧,法国的转移范围从25%下降到近30%。