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Sunday, January 22, 2012

Persons instead of the welfare state

Persons instead of the welfare state

CHRISTIAN HOFFMANN
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Open markets and free immigration staff are not compatible with the collective system redistribution of the welfare state.
Since the first May 2011 is the Agreement on the free movement of persons now finally available for the Eastern European EU member states like Poland, Hungary or the Czech Republic. Prior to this opening in Switzerland were known reservations about a more liberal immigration policy to be heard.
On the one hand, there was worry about possible wage loss of workers and called for a statutory minimum wage. It is true that an increase in labor supply with constant demand in the tendency to a decrease in the prices of labor leads.However, this is an overly static view: there are more workers available, creates new investment opportunities and growth potential. This results in rising wages.A minimum wage affects the other hand, like a corset - it perpetuates outdated structures and forces and foreign workers to fight for existing jobs infertile.
On the other hand, however, fears were once again of an impending "social abuse" by brazen immigrants. This ensures you eventually to the preservation of the welfare state in the face of open borders - is of "social dumping" about the speech here. Ultimately, however, both felt their lines of argument against the persons in Europe only modestly to the dark secret of our social systems approach: its fundamental incompatibility with open borders.
Today's welfare states of the West are based on collective coercive redistribution systems. This approach stems originally an early capitalist era, marked by closed borders and immobile workers. At that time, collectivized the policy before the self-responsible social care professionals, and forced the workers to subsidize their right due to age, illness or disability inactive citizens. They were all so dependent on government hand redistributive social insurance funds. The Switzerland went through this process thanks to the long-standing opposition of their citizens but later than other European countries, but they could ultimately the political pressure in favor of a comprehensive supply of State - including the nationalized maternity leave - do not resist.
If escape is now such a productive workforce, but particularly the welfare state, as is currently happening in Germany felt that redistribution model also gets shaken, as if a large number of potential welfare recipients who have not made corresponding payments, a state flow towards you. Since the welfare states of the West is not based on saving, but on redistribution, they create a strong incentive to avoid deposits and withdrawals to maximize. No wonder, warns about the German economist Hans-Werner Sinn in a negative fiscal impact of the new EU immigration.
The problem is thus not the "abuse" of the welfare state or an undermining of its standards by migrants, but simply to be "use" in accordance with the rules of today's social policy. Collective redistribution can not meet the needs of internationally mobile workforce needs. The greater flexibility of the welfare state it takes the labor market, the more serious fall from the negative effects of immigration on the redistribution of funds: long-term unemployment, social division, early retirement or disability license are among the known symptoms - with increasing tendency.
From this vicious circle there is only one way out: the replacement of the redistribution systems through a model of precautionary saving based on individual retirement accounts or health. Only such an approach allows a flexible workforce and reliable social security independently of migration decisions. By the policy, but closes these necessary reforms, it remains the outdated idea of ​​a closed society arrested. This is precisely the traditionally cosmopolitan Switzerland has had an excellent experience with a liberal immigration policy, as migrants in the past, contributed decisively to their affluence - and not at all as only guest workers, but also and primarily as entrepreneurs, scientists, writers and artists.For the continued success of this model requires further restrictions therefore not according to arbitrary criteria, but rather a reduction of the outdated welfare state.
This article was published in the LI-perspective 2 / 2011.

http://www.libinst.ch/?i=personenfreizugigkeit

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