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Notes -
In practice most states historically undertook massive spending as a share of GDP by using government monopolies or significant state owned property as either direct sources of funding, or collateral on debt, rather than through taxes.
So, is it possible that the government will choose to nationalize large chunks of the economy to fund enormous welfare programs, rather than raise taxes?
And, BTW, Argentina, Russia, and Lebanon have all seen declines in middle class standard of living without massive political instability within living memory, haven’t they?
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