Fiscal crises threaten Europe's generous benefits

[Christopher]

http://news.yahoo.com/s/ap/eu_europe_financial_crisis_welfare_state

LONDON – Six weeks of vacation a year. Retirement at 60. Thousands of euros for having a baby. A good university education for less than the cost of a laptop.

The system known as the European welfare state was built after World War II as the keystone of a shared prosperity meant to prevent future conflict. Generous lifelong benefits have since become a defining feature of modern Europe.

Now the welfare state — cherished by many Europeans as an alternative to what they see as dog-eat-dog American capitalism — is coming under its most serious threat in decades: Europe's sovereign debt crisis.

...

"They've hit us really hard," said Federico Carbonero, 92, a retired soldier. He said he was unlikely to live long enough to see the worst of the pension freeze, but had no doubts he would have to start relying on savings to maintain his lifestyle.

It's a rough day in the world when one must survive on one's own savings. Some might say Armageddon. I call it life. ... but to be fair, he was probably overtaxed during his working days in the first place.

[dan2100]

http://news.yahoo.co...s_welfare_state

LONDON – Six weeks of vacation a year. Retirement at 60. Thousands of euros for having a baby. A good university education for less than the cost of a laptop.

The system known as the European welfare state was built after World War II as the keystone of a shared prosperity meant to prevent future conflict. Generous lifelong benefits have since become a defining feature of modern Europe.

Now the welfare state — cherished by many Europeans as an alternative to what they see as dog-eat-dog American capitalism — is coming under its most serious threat in decades: Europe's sovereign debt crisis.

...

"They've hit us really hard," said Federico Carbonero, 92, a retired soldier. He said he was unlikely to live long enough to see the worst of the pension freeze, but had no doubts he would have to start relying on savings to maintain his lifestyle.

It's a rough day in the world when one must survive on one's own savings. Some might say Armageddon. I call it life. ... but to be fair, he was probably overtaxed during his working days in the first place.

This is all the more reason to dismantle these welfare states now -- to move these people to more sustainable retirement and support systems... Some fear it might be too late -- that the present systme is so enmeshed in this that almost everyone has a stake in keeping it going as is rather than risking any fundamental changes. I, however, believe free markets and free people can turn things around rather quickly. One need only look at some limited cases to see how quickly things can change. Think of Germany and Japan after World War Two, especially under Allied occupation which seems to foisted as bad or worse market interventions that during the war. Once, however, even minor market-oriented reforms were made, such as lifting some price controls, the societies started to bounce back.

To be sure, if you'd just turn off the Western part of Eurasia to me...