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Modern welfare states face death spirals

Budget deficits and debt are the real problems; and these stem from all the welfare benefits - unemployment insurance, old-age assistance, health insurance - provided by modern governments.

Average pension benefits will be cut 11 percent; wages for government workers will be cut 14 percent; the basic rate for the value added tax will rise from 21 percent to 23 percent.

These measures will plunge Greece into a deep recession. In 2009, unemployment was about 9 percent; some economists expect it to peak near 19 percent

http://www.dailymail.com/Opinion/rsamuelson/201005090344