And so it is a matter of course that in most countries, the public sector shares in individuals’ income to a certain degree by imposing taxes, with the majority of these countries imposing progressive taxes. This enables the public sector to supply public goods.
Achieving social cohesion by means of social security transfers, building human capital by subsidising education, and promoting the labour market participation of women, the long-term unemployed and lowskilled workers – all of these things can boost not only inclusion, but growth as well. Bearing this in mind, it is important to find the right calibration of growth policies.