Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of MacroBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of MacroBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd


The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Personal Finance / Macroeconomic Trends & Risks
Unthreaded | Threaded | Whole Thread (28) |
Author: albaby1 SILVER
SHREWD
  😊 😞

Number: of 4460 
Subject: Re: Witnessing the end of Europe's welfare state_
Date: 10/20/25 10:52 AM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 8
It is easy to see the social structure a Europe being stressed as fund which previously supported a superior life-style for the common man to used to arm their respective countries - as well as those who see that life-style evaporating demonstrating to hold their grip on it.

Maybe. But it's important to keep a sense of proportion about it. Most European nations currently have government spending a bit north of 40% of GDP. More also have military spending at between 1.5% and 2.0% of GDP, give or take. The U.S. has about 3.4% of GDP spent on the military. We're talking about a point or two of GDP, which itself will only be few points of their overall budgets.

So while moving a point or two of GDP away from butter and into guns isn't nothing - and it's probably a lot of money in absolute terms - it isn't likely to "end Europe's welfare state." To be sure, it will require some difficult choices, and will stress some aspects of their welfare state. Perhaps that inspires some bigger changes... but the magnitude of remilitarizing shouldn't be large enough to itself force Europe to actually end their welfare programs.
Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to albaby1 here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 4,454 posts about Macroeconomic Trends & Risks. The article-length ones it recommended most:
AI Tarpits · 36 recs · 2026
End of an era - profit slowdown · 36 recs · 2023
Control Panel: Trend changes in 2026 · 34 recs · 2026
From the Oregon Bay Area (a blogger) · 33 recs · 2025
Lerner Symmetry Theorem · 32 recs · 2025
Unthreaded | Threaded | Whole Thread (28) |


Announcements
Macroeconomic Trends & Risks FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of Macro | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community