European Countries (including Greece, Portugal, Ireland and Spain) Have Committed A Rising Share of GDP to ‘Social Benefits’ Over Past Decade Social Benefits Paid by Government as % of GDP, 1999 vs. 2009 a Q 5 m= 2009 = 1999 = 1 20% — s European Union 2009 Average = 17.1% 5 ~~ eee. £ ° Oo Fy 3 iv] eee | oo | oe | oe | oe | oe | ee | le | le | ld | i | lo oe | le 2 @ o a S 5% S$ = gs € € wpizgtte FP gig! 1 g! I I x | I I I a 3 mame: ll o_o Source: Eurostat. ‘Social Benefits’ include both social insurance (comparable to Social Security and Medicare) and social assistance benefits (comparable to Medicaid) provided by government units as well as all social insurance benefits provided under private funded and unfunded social insurance schemes, whether in cash or in kind. (@)) www.kpcb.com USA Inc. | Consequences of Inaction 427 Austerity Measures to Take Away Entitlement Benefits Could Spark a Vicious Cycle Less. Revenue for mall Businesse Highe ower Unemployment Government Tax Receipts Lower Consumption Less Investor Confidence Lower Productivity Higher Tax Rates More Austerity Socie S Vieasures (@)E) www.kpcb.com USA Inc. | Consequences of Inaction 428 HOUSE_OVERSIGHT_021055