What Can Rich Countries Afford?

Remember the American GI bill, which put ex-service members through university?

When people talk about how much health care for all will cost, or any other program, you need simply remember the above, or that military spending makes up over 50 percent of all discretionary spending in America.

Spending is a fairly good indicator of a country’s real priorities. It’s easy to afford the cost of something you believe is first priority in a rich country–and the US is still a rich country. And if you don’t “have enough,” well, by historic standards, the US is hardly taxing anyone at all. Remember, back in the 50s top marginal tax rates hovered around 90 percent and corporate tax rates were much higher (and with far fewer loopholes).

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Basically, America can afford whatever America wants to afford, and the same is true of a variety of other countries like France, Germany, and Britain, and so on. The choice not to do something, in rich countries, is a choice, and reflects the goals of the people who run the country, and very little else.

This is especially true because the more a country does, the more it can afford, since doing more means more economic activity and generates a larger tax base.

It’s just a choice. There are countries that are literally unable to choose prosperity, it’s not so easy for them. But all of the major developed countries are perfectly able to do so.