Monday, October 5, 2015

Issue 692 European Social Security October 5, 2015

Europe is interesting.  They are united due to the European Union, but they have not gone and taken the steps necessary to take it a step further with respect to their welfare based systems.  Let us discuss.

European Welfare:  Let's discuss the advantages of uniting their systems of welfare first before we look at why they do not want to do so as of yet.  For one, the key advantage is money.  A greater money pool means more resources to distribute benefits for everyone.  Also, as they have the free movement of people there, a unified system helps to ease the transition of peoples if they are on welfare in one part and still need to be on welfare in another.  Basically, logistically, if you're a citizen in one country some may still be able to get benefits even if they are in another European Union country, or they will be denied benefits once they leave their home nation and have to go through hoops trying to get welfare in their new home country.  So by streamlining it, they fix those issues.  Another benefit is that if they unify the system to extend across Europe, that means local governments and national governments need not worry about such issues anymore. They literally free their national budgets up (if designed to do so), which allows the European nations like Greece to focus more on technology and infrastructure.  European welfare is also not that unique, but is not equal in each country.  As such migrants will generally travel to one country with the best welfare to freeload.  A unified system ends that.

But the European nations do not want to yet.  They like the autonomy and control they have over the welfare system.  It basically gives them power over some of the citizenry.  It is also a bit of nationalization where these countries like to lay claim that they can aid and help their own citizens.  Not to mention all these countries provide different forms of benefits and by giving it over to a unified system, they may inadvertently be denying benefits to their citizens.  As such riots may ensue.  Also, there is the issue that the system cannot keep up with growth of the entire European population, which means that the benefits of a unified system may need to be curtailed or denied due to lack of funds.  These are the reasons why they have yet to take the next step.


Conclusion:  Europe has a lot to gain from joining hands on welfare type programs.  A unified system would handle seniors in retirement, disability, unemployment/job training, medical and due to their brand of welfare and need for increasing native populations, there system will also handle child care and maturity leave.  They can also have the group that runs the program decide the number of hours per week a person is allowed to work, how much pay a person should get per week, and the number of breaks at work a person is allowed to have.  It can be means tested to insure fairness, and be contributed to via a separate tax on every European citizen so that they contribute to their own retirement and welfare in times of trouble.  They can do much here, and I think it is only a matter of time before they begin this shift toward a unified welfare system.

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