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Though Polish voters in October ousted their right-wing populist government, recent elections in Slovakia and the Netherlands show that populism remains as malign and potent a political force as ever in Europe. But these outcomes also hold important lessons for the United States, where the specter of Donald Trump’s return to the White House haunts the runup to the 2024 presidential election.
Hans-Werner Sinn
A market economy is efficient, but it is not just. Because wages are determined by the law of scarcity, some people cannot earn enough money to live a decent life.
In Western Europe, the welfare state helps these people. It guarantees a socio-cultural subsistence minimum by paying replacement incomes in the form of social aid, unemployment benefits, or early retirement benefits. If the market does not provide you with a sufficient income from your labor, the state will provide an income without requiring you to work.
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