Does this prove socialism is a failure?

Fiscal crises threaten Europe's generous benefits





By MICHAEL WEISSENSTEIN (AP) 鈥?4 hours ago





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





Deep budget cuts are under way across Europe. Although the first round is focused mostly on government payrolls 鈥?the least politically explosive target 鈥?welfare benefits are looking increasingly vulnerable.





"The current welfare state is unaffordable," said Uri Dadush, director of the Carnegie Endowment's International Economics Program. "The crisis has made the day of reckoning closer by several years in virtually all the industrial countries."





Germany will decide next month just how to cut at least 3 billion euros ($3.75 billion) from the budget. The government is suggesting for the first time that it could make fresh cuts to unemployment benefits that include giving Germans under 50 about 60 percent of their last salary before taxes for up to a year. That benefit itself emerged after cuts to an even more generous package about five years ago.





"We have to adjust our social security systems in a way that they motivate people to accept regular work and do not give counterproductive incentives," German Finance Minister Wolfgang Schaeuble told news weekly Frankfurter Allgemeine Sonntagszeitung on Saturday.





The uncertainty over the future of the welfare state is undermining the continent's self-image at a time when other key elements of post-war European identity are fraying.





Large-scale immigration from outside Europe is challenging the continent's assumptions about its dedication to tolerance and liberty as countries move to control individual clothing 鈥?the Islamic veil 鈥?in the name of freedom and equality.





Deeply wary of military conflict, many nations now find themselves nonetheless mired in Afghanistan on behalf of what was supposed to be a North Atlantic alliance, shying away from wholesale pullout while doing their utmost to keep troops from actual combat.





Demographers and economists began warning decades ago that social welfare was doomed by the aging of Europe's baby boomers. Some governments had been trimming and reforming, but now almost all are scrambling to close deficits in order to prevent a wider collapse of confidence in the euro.





"We need to change, to adapt ... for the sake of the protection of our social model," European Union Commissioner Joaquin Almunia of Spain told reporters in Stockholm Thursday.





The move is risky: experts warn the cuts could undermine the growth needed to pull budgets back on a sustainable path.





On Monday, Britain unveils 6 billion pounds ($8.6 billion) in cuts 鈥?mostly to government payrolls and expenses. The government has promised to raise the age at which citizens receive a state pension 鈥?up from 60 to 65 for women, and from 65 to 66 for men. It also plans to toughen the welfare regime, requiring the unemployed to try to find jobs in order to collect benefits.





Britain says it will limit child tax credits and scrap a 250-pound ($360) payment to the families of every newborn. Ministers are reviewing the long-term affordability of the country's generous public sector pensions.





Funding for Britain's nationalized health care service will be protected under the new government, however, and should rise each year to 2015.





France's conservative government is focusing on raising the retirement age. Many workers can now retire at 60 with 50 percent of their average salary. Extra funds are available for retired civil servants, those with three or more children, military veterans and others.





A parliamentary debate is planned for September. Unions in France are organizing a national day of protest marches and strikes on Thursday to demand protection of wages and the retirement age.





In Spain, billions in cuts to state salaries go into effect next month, and the Socialist government has frozen increases in pensions meant to compensate for inflation for at least two years.





"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.





Spain is cutting assistance payments for disabled people by 300 million euros ($375 million) and did away with a three-year-old bon|||Socialism is great until you run out of others peoples money, just like the lib demonrats are doing to America.





Obama hates America.





He was raised by an anti-American commie mother who hated America.





He was adopted by an antiAmerican commie Muslim who hated America.





He gravitated toward anti-Americans in college even though he tuition was paid because he claimed he was a foreign student.





He attended an antiAmerican racist church.





Do the math.|||A. That isn't socialism. Look in the dictionary. Socialism is state ownership of the means of production.





B. What it means is that if you spend too much, you have to cut back. Nothing more. A lesson California could learn.|||European countries are all capitalist free market countries. Not one of them is socialist. Its capitalism again that is failing|||It shows that everything has a cost. Any situations that have costs also have opportunity costs. In the case of European socialism, the question is whether the state can provide these high levels of supports for the populations under the current economic questions. The answers are ugly but not within the realm of understanding. They must either cut the benefits or increase their already high taxation rates. The current crisis is showing that tough choices must be made so that the whole of the economy is not swallowed up by social programs. The do eat dog world of the US, is not a model, yet it is also struggling with a smaller but no less daunting task of welfare reform. The post world war two generations will have to make super tough choices regarding social welfare, the money is just is not there under the current levels.





In short, the services will change but the commitment to providing to its citizens does not have to.|||The failure of the public housing projects in the USA during the 1970's and 80's was a graphic illustration of the failure of socialistic policies in this country.





With that said, read the article more carefully.





Doesn't Germany have a generous welfare state just like the UK or Greece? Why are Germany, Norway, and Sweden prosperous, while Greece, Portugal, Spain, and Italy are going broke?





TRADE BALANCE is the distinction. Having progressive social programs does not make the difference between being prosperous and going broke. Trade balance does.





Germany, Norway, and Sweden have a trade surplus.





Greece, Portugal, Spain, and Italy have a trade deficit.





Now guess which one the USA, UK, Australia, and New Zealand have?





The USA has a trillion dollar annual trade deficit.





We are going broke like Greece.





We must stop importing so much. We import too much, which sends jobs out of the USA.





We were prosperous in 1980, before Carter, because we imported less than we exported. That gave us a trade surplus, and we had prosperity.





We lost our trade surplus during the Carter years. That's what cause the stagflation and "economic malaise" that Carter wailed and moaned against.





The history of the USA and the current events in Europe leave no doubt - TRADE BALANCE dictates the economic destiny of a nation.





WE MUST END FREE TRADE NOW and end our trade deficit. It is as economically vital as it was to become independent from England and to abolish slavery.





ENDING FREE TRADE is the next economically vital step we must take as a nation. Otherwise we will surely go broke like Greece.|||... Nope. It just proves "MICHAEL WEISSENSTEIN" is a wingnut who doesn't understand the definition of "socialism."