In: Economics
Write a two page paper answering and describing :Can democracy survive if a majority of the citizenry pay little or nothing in taxes while benefiting directly from a higher level of government spending? Why or why not? Discuss
In my view democracy can not survive when the majority population pay little taxes and they enjoy from government spending since if the majority population isn't paying taxes this will be deterimental to the economy as the minority population who is contributing maximum to government finances will lose the incentive to earn ,more so when the benefits from government are targetted towards the majority population .This create inefficiency on both fronts as the majority population who is not contributing much to the taxes become overreliant on government subsidies/ grants where as the other group loses incentives to work and earn more and will result in the increase in unemployment.
This will also result in the social tension in the nation which can cause the clashes between sections, these also causes the major atrainnon government gjnances since the income is mostly reliant on the small section ofbthe society and poses the risk to government.