Europe's Welfare State Blues

Research by Nobelist Ed Prescott:

In Europe, governments typically commandeer 50% of GDP.

The burden to pay for all this largess falls on workers in the form of high marginal tax rates, and in particular on married women who might otherwise think of going to work as second earners in their households.

 The welfare state is so expensive, it just breaks the link between work effort and what you get out of it, your living standard.  

And it's really hurting them.