LAU: Government spending doesn’t buy happiness

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If or not Money has bought happiness for a long time controversialbut whether Government Money buys happiness needs not be asked – it’s clear not.

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Actually, as Milton Friedman once writtene, Government spending often doesn’t even arise in more of whatever the expenses are should produce. His example In CaliforniaGovernment spending was on higher education is among the highest in the United States, But California‘S The quality and quantity of education were significantly worse.

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Today we find many in Canada similar cases including the HealthCare systemwhich, unlike other developed countries, offers universal healthcare does not allow private insurance markets or out-of-pocket payments for medically necessary services.

Compared to 29 comparison countries, adjusted for the age of the populationCanada ranks highest on healthNursing expenses as a percentage of GDP and eighthshighest on Expenses per person. But on doctors per person (28Th from 30), Hospital beds per person (23approx from 28) And Waiting times for specialists (10Th (out of 10) Canada performs poorly.

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Another example is child care. The Trudeau government has budgetEd almost $36 Billions in the childCare expenses over five years, but that is unlikely result more child care. bBoth before and after this federal spending explosion, children were cared for – TThe government program simply changed the form of care away from Parents’ Preference (what they would have chosen iN a free market without one Government distortion) and compared to the one preferred by the government, state-sponsored variant.

This distortion and expansion of state control has thrown the childCare sector into crisis from coast to coast. To make things worse, Much of the money supposedly intended for child care is likely to end up dead Financing bureaucratic instead expansion the provision of actual child care.

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Finally, think about it federal, provincial and municipal Government spending on business subsidies, total more than $350 billion from 2007 to 2019 (after adjusting for inflation But exincluding tax breaks, credit guarantees, direct investments and Regulatory Privileges). Politicians who distribute this money like to say Shere create and improve good jobs economic growth, But few Proof for such claims.

This is iS not surprised. It would As a matter of fact Be unrealistic Politicians think who didn’t earn the money, who doesn’t own the money, who are not financially rewarded if they invest wisely And Don’t pay a price for waste The Money would spend 350 billion dollars better as The People who earned the money and whose livelihood depends on investing It way.

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Far from increasing economic growth, bEconomic subsidies hinder productive activity through taxes, Move capital to relatively U.Nproductive uses, and encourage companies to get involved resources too chasing public money instead of to produce valuable goods and services.

We see the same thing Tendency towards higher government spending but worse outcomes in other areas. Over the last two decades, public school spending in Canada has gone up. Meanwhile, tEuropean Summer Time Have grades in reading, math and science trended steadily downwardssuggesting that increased government spending on education does not Necessary lead to better Education.

Therefore whether in education, healthcare, childcare, the business area and many others areasItIt is absolutely clear that government money does not buy happiness. On the contrary, lspend more money in the hands of Individuals by cutting government spending can certainly do many people happy.

-Matthew Lau is an associate scientist at the Fraser Institute

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