The Myth That Entitlements Destroy a Nation's Growth, Busted in 1 Chart

By Matthew O'Brien
The euro crisis is supposed to be the death knell of cradle-to-the-grave government. But the reality is the only thing the euro crisis might be the death knell of is the euro. None of Europe's biggest welfare states are in trouble.

Let's look at some data. The chart below compares average social spending with adjusted per capita GDP growth since 2000. (Note: The y-axis shows social spending as a percentage of GDP; the x-axis shows percentage growth. Data is from the OECD and IMF). See if you can make out any kind of discernible relationship here.

I know this picture is worth 1,000 words, but here are four more. There is no pattern.

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