"Many countries, especially developed ones, have a problem with their government finances. Just over half of respondents supported action to cut government borrowing.
The preferred method of doing it was cuts in services, rather than increased taxes, in every country except Egypt (where taxation was the more popular option).
The preference for spending cuts was especially marked in Brazil, China, Germany, France and Azerbaijan."
Looks like governments have to have a feel for what the governed want in order to legislate properly.
I read a similar article and it said that some countries (along with wanting tax cuts and reduced public spending in order to prevent further deficit) wanted government to increase food subsidies. How do they expect for that to happen without any funding/spending?
ReplyDeleteWhy is it that developed nations prefer tax cuts whereas developing nations prefer reduced public spending?
Developing governments tend to be far more involved in the economy than in developed nations. Goods and services and redistribution of income are generally far more necessary in lower income economies where this might be the difference between life and death for some people. In developed economies, even if you cut services it will not push people to the brink of starvation. Ultimately, the stakes are different.
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