Tuesday, March 29, 2016

More on the fall of the social welfare states


Europe is the birthplace of Western civilization and the source of most of the trends and bodies of knowledge that define modernity. The average European speaks several languages versus sometimes less than one for Americans. They are, in short, a well-schooled people with vast accumulated wisdom.
So how do we explain this: After World War II most European countries set up generous entitlement systems including government pensions designed to offer dignified retirements to citizens who had worked hard and paid taxes and obeyed the rules for a lifetime. BUT they didn't bother putting anything aside for the inevitable -- and mathematically predictable -- retirement of the immense baby boomer generation.


"Western European governments are close to bankruptcy because of the pension time bomb," said Roy Stockell, head of asset management at Ernst & Young. "We have so many baby boomers moving into retirement [with] the expectation that the government will provide."
The demographic squeeze could be eased by the influx of more than a million migrants in the past year. If many of them eventually join the working
population, the result could be increased tax revenue to keep the pension model afloat. Before migrants are even given the right to work, however, they require housing, food, education and medical treatment. Their arrival will have effects on public finances that officials have only started to assess.

I have written that Social Security and Medicare actually threaten the continued existence of the United States as a political entity. Things appear to be even worse in Europe. It appears that European leaders have bet the farm, so to speak, on allowing unlimited immigration into their countries as a fix for their pension shortfalls. What they do not seem to realize is that they have invited a vampire into their home. The people entering are uneducated, unemployable (in a modern technological society), and have an incompatible world view (Islam) than the native population. Do Europeans actually think that all these third world bums are just going to show up and start contributing? 

Magic Dirt theory is a fantasy. People are who they are and they don't magically change because they step foot into Germany or the US. The costs financially, socially, politically, and militarily are not even close to being fully calculated for what is becoming the greatest invasion in the history of the world. 

What is actionable about this is the fact that you cannot rely on any government pension schemes or corporate schemes at this point. That should be more than obvious at this point. Unfortunately, for most people they will work until the day they die just to survive. All because they believed sociopath politicians that told them they could live off their neighbor by just pulling a lever in a voting booth. 

The future for those that entrust their retirement to government

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