Monday, July 20, 2009

Germany: the Social State throttles the Nation

The Social State bribes the people to win their loyalty

Since the Germany's Iron Chancellor Bismarck introduced pensions Western states have followed its lead to bribe the people into loyalty towards the state. Especially after the demise of nationalism as an ideology, states have transferred large sums from economically active citizens to inactive ones.

Good pensions and a dearth of babies

With the question of care in old age solved by the State, procreation to ensure offspring that will be responsible for old-age care is no longer required for German citizens. German birthrates have fallen to 1.4 child per woman, below the 2.1 replacement rate.

Recession hits workers, but not pensioners

With the current recession many Germans are falling on hard times. Many lose their jobs, others are on short time contracts and others see their incomes falling. But the German state is guarantueeing the income of its pensioners. In fact the pensions of West-German pensioners are set to rise by 2.4 percent. And East-German pensioners get a whopping 3.4 percent rise of their pensions.

The funds have to be coughed up by the 25 to 35 year olds. Herr Finance Minister Steinbrück stated that this is a wrong signal to
the 25 to 35 year old cohort, who have to bring children (German) in the world. For this generation we ought to care more.
Labour (SPD) Minister Steinbrück added that the pensioners
are doing well like never before.
The grey wave is cresting

As Germany's population is aging, the vote of pensioners becomes more and more important for political parties. The pensioners seem to be careless of the future of their children and the German nation. Unlike e.g. The Netherlands or France which seek to prop up the native birthrate such measures are taboo in Germany. Birth rate increasing policies are connected to the days of the reign of the Nazi Party, which wanted a growing population to populate conquered territories in the East.

At some point these taboos will have to be addressed or the German state will not be able sustain to paying worthwhile pensions to its citizens.

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