Archive for October 24th, 2013

Welfare Generalizes Savings

October 24, 2013

Welfare Does Not Just Save Bodies & Souls, But Also One’s Pocketbook.

Systems of governance, systems of thoughts and emotional systems, be they of institutions or of individuals, are all closely related. A case in point is the relationship of the private savings rateversus the rate of social expenditures in various nations .

The more the social expenditures, that is, the welfare state, the greater the private savings.

We Socialize, Therefore We Save

We Socialize, Therefore We Save

Notice that FR (France) spends socially way more than any other country. Part of France’s lower savings rate relative to her sister republic “GE”, Germany, is no doubt related to the fact that France has now a third more youth than Germany (instead in 1940, the fascist Germanoid “Reich” had twice more youth than the French Republic). Young people save less.

France, thanks to colossal taxes, spends socially about twice more than the USA, but the French saving rate is also 50% higher than the saving rate in the USA.

Oblivious to facts, Alan Greenspan, plutocratic propagandist, ex-central banker, friend and governmental czar of financing the hyper rich with trillions, is out spewing more of his plutophile mental poison with a new book. Krugman denounces the insults to reason it consists of:

“Greenspan thinks he has discovered a new law: transfers to individuals, even if fully paid for with taxes, reduce national savings one for one. You can bet that this claim will soon be popping up on the right as an established fact… as a reason to weaken the safety net.

The obvious answer is to look cross-country: European nations have much bigger welfare states than we do; do they have lower savings? No.

A quick-and-dirty version: I compare social expenditures as a share of GDP (from the OECD Factbook) with national savings rates for 2010 (from the IMF WEO database). “

This is the graph above (thanks Paul Krugman for doing the research; you search, I explain!).

Where does the positive correlation between welfare and savings come from? Simple: Both the will to savings and the will to welfare are motivated by the same mentalities.

The more welfare the state, the more considerate the People of that state. That’s obvious. Now, where does the will to welfare comes from? Consideration. The more considerate to others, one is, the more for a welfare state one is.

Now, if one is more considerate to others, one, naturally, will be more considerate to oneself. Where does the Latin word “considerare” comes from? It meant to look closely, observe carefully. In other words, to look at something as one does to the stars

This, by the way is in full consideration of the flaw in the much touted “Golden Rule” of treating others as one would treat oneself: treating others as one treats oneself does not help others if one wants to kill oneself, or abuse oneself!

Hence the Will to Welfare involves more than sheer reciprocity, and “love” of others. It involves consideration. In particular consideration to the potentiality of changing circumstances, and their fluctuating nature. Thus to will and implement the welfare state, people have to be informed, serious, and well intentioned to others and themselves.

The same emotional system lead people who want welfare to all, to complement it with even more welfare to themselves. the more serious the People, and the more savings oriented they are.

Thus that countries with a greater welfare state save more is no accident, but direct psychological causality.

La Fontaine’s famous fable “La Cigale et La Fourmi” (Ciccada and the Ant) acknowledged part of this, four centuries ago. It is mandatory reading and memorizing in French elementary school.

Propaganda by the likes of Greenspan is part of the collapse of the United Stasi of America down the black hole of plutocracy unchained. Stasi? Merkel, October 24, 2013: “To spy between friends that does not work at all.” The colossal NSA spying is in violation of European, French and German law.

Meanwhile Norway, with its 3% unemployment, GDP per capita more than twice that of the USA, superlative infrastructure, one billion dollar national wealth fund (100 billion at the scale of the USA), is inaugurating an anti-Islamization government. The right wing spokesman of the new right wing government rightly points out that immigration without integration is only ruin of civilization (as the Romans found out). He said what was at stake was the colossal Norwegian welfare state, the necessity to defend it.

Meanwhile France is facing a strike of the soccer clubs. A 75% tax on income above one million Euros has brought the ire of the rich.

Yet, polls show that 85% of French people approve of the 75% tax on income millionaires. And why should some ignorant who kicks a ball be paid a fortune, and an engineer or nurse very little? This is also a question Brazilians have as they face cuts in social services, while circuses are going up.

If we want a human society, we have to make sure that plutocracy is kept in check. and only thus can welfare, hence savings, and consideration, thrive. Taxes is the way to do it, lest the core rots away (as it did in Rome; by 400 CE, the empire could not even afford to defend its borders, as I have explained many times).

Be it only to brandish a sword, one needs a heart, and a soul. And having a soul also means not to intrude with all the powers in other people’s souls: down with the United Stasi of America!

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Patrice Ayme