Chapter 14 - Borrowing Social-Spending Lessons

Summary

Drawing on three main lessons suggested by the global history of social spending, this final chapter illustrates how countries can adapt policies followed in their own past or in countries with similar histories. Our three country cases depict policy options facing Japan, Venezuela, and the United States today. For Japan, only a nudge should be needed to make the needed repairs. For crisis-ridden Venezuela, a major overhaul is in order, though it would call only for policies already practiced either in Venezuela’s past or in similar countries. For the United States to adapt policies from three near relatives – Canada, New Zealand, and Australia – simple nudging should do the job for anti-poverty “welfare,” for pension policies, and for investments in early childhood, while more serious changes are called for in the case of American health care.