I would say this probably happened despite of it.
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That the US has such a high middle class and that it has low taxes are correlated.
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largest *contiguous* market meaning if you're an entrepreneur, you get to target a 300M+ person market from Day 1 in the US vs. Europe, which until the EU and even well into today, you have a Balkanized market, which is much more challenging to land grab for founders.
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Welfare transfers aren't even really counted as government spending because they show up elsewhere in the economy
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