Hacker News new | ask | show | jobs
by mschuster91 3 days ago
> only spends 16% of GDP on public welfare

It's easy to not have to spend much money on public welfare when there is a constant stream of foreign money floating in.

1 comments

That doesn't make much sense. Do you think foreign money is directly paid to people who would otherwise be welfare recipients? Is there anything foreign money can't do, would you say?
When foreign money flows into the economy, it generates jobs, and because there is so much of it, these jobs can be well paid. And when you got a population that has a low unemployment rate and high wages, you consequently need to spend less money on social welfare.