The article presents a misleading picture on the magnitude of Britain's welfare system by including retirees receiving government pension benefits as part of Britain's welfare population. If Social Security beneficiaries in the United States were counted as welfare recipients, it would multiply the number of beneficiaries by a factor of four. Past articles in the Times have generally failed to note this point when they have chosen to tout the relatively low British unemployment rate as evidence of the success of its flexible labor market policies, compared with the more regulated markets on continental Europe. This article examines the current situation in Brazil. At one point it comments on the efforts of Brazil's president, Fernando Cardosa, to cut back on Brazil's social security benefits.
Brazil has one of the most unequal distributions of income in the world.
It has a tax system that is notoriously corrupt, with the rich generally evading most of their tax liability. It is interesting to note that foreign officials never viewed cracking down on tax evasion by the rich as a test of Mr. Cardosa's resolve. The article does not indicate how it has determined that benefits in these countries are too generous. This assessment seems particularly dubious in the case of the United States, since its Social Security program can pay all scheduled benefits for the next 35 years, with no changes whatsoever, even if the economy only grows at half its historic rate. While there is not reliable data on current poverty rates in Brazil, this claim seems implausible on its face.