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By Martin Rein (auth.)

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In the short space of twenty years the very nature of federal activities has changed radically, the newer programs are different; and the older ones have taken on more ambitious goals" that traditional explanations do not measure. Charles L. Schultze, The Public Use of the Private Interest. : The Brookings Institution, 1977. P. 9. 11. Civil public consumption equates current expenditures for goods and services, excluding defense expenditures; and social transfers include current transfers to households and Social Security benefits plus social assistance, but exclude subsidies, interest on the public debt, and other transfer expenditures.

To an extent, these reactions against bad old gratuity interpretations have already gone too far, locking in against statutory alteration benefit-inflating gimmicks such as . ,,25 Whatever intellectual rationales are advanced to justify fringes and the principle of entitlement to them, the growth of fringes as an economic resource has a substantial effect on the distribution of income. Sometimes fringe benefits can narrow inequalitites. Consider the situation of sick benefits in West Germany. As in most countries, Germany had a sick benefit and a parallel sick pay system.

A way of keeping the human machinery functioning smoothly, The truck system and welfare benefits are interesting because they illustrate the fact that there is a dynamic operating in the area of fringe benefits that accommodates to the changing norms of society over time. What is particularly interesting is that these benefits are not abandoned completely when they become historical anachronisms, but are transformed into a modern equivalent . The second type of consumption subsidy is much broader: it includes subsidized housing, assistance in purchasing housing, educational benefits for workers and their children, low-interest loans, bonuses, and use of the company car when its use is not directly related to the job .

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