David_Gerard comments on So you say you're an altruist... - Less Wrong
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Per year? If so, that is evidence mostly that your system is ridiculous. When I worked for the Department of Social Security in Australia (who do most welfare payments) in 1991, our running costs were 2% of benefits disbursed (so we were told by our managers).
In this case, I really think a cite for precisely what he was claiming, and his source for it, would be needed.