He discussed a few days ago with a group of students on the welfare state, social services, government social policies, etc.. When talking about this issue there is always the comparison with the U.S. (especially now that we talk about health care reform proposed by Obama) and indicates that there are always those who can not complain because the government offers "free" a range of services (eg that Americans have to pay out of pocket.)
striking how the "free": free health care? "Free education? If we start to calculate how much it costs each family these services that some believe that "gives" the state (and others want to see who gives the government) we would be ungrateful surprise.
A student sent us some data from the Internet that dismantled the theory of free and I have also served to reflect on the actions we need to overcome the crisis:
- We need to create several million jobs
- To do this we need to create new businesses (Spain is one of the world's countries where more costly, complex and slow to create a new company, in some European countries is made on the Internet 24 hours with little cost) and that companies that have survived recovered their production levels
- If we want produce more we must first be able to sell more, so we need to optimize our business strategies in emerging markets will pull the cart (India, China, Brazil ...) and the old Europe seems cold engine will (and do not serve to solve the millions of flu vaccines made of A)
- But selling better in those markets (in which we do not eat a thread if we compare it with English, French or German-Americans, needless to say) we must, above all, revive domestic consumption. How the hell
revive domestic consumption if every day thousands of people lose their jobs? How to generate new jobs if every day people eat less? If not we break this vicious circle will take a decade to revive our economy.
labor reform is needed to encourage companies to hire (not so conservative when considering the desirability of creating a new job). And in parallel we have to let citizens have more money to consume.
But we can not raise wages (as one of the serious problems of our economy is this: the wages are very low, but productivity also, if we raise wages many companies no longer be competitive). What then for people to have more money to eat?
is when (bad that many people though) we draw inspiration from the United States, the mecca of consumerism. Yeah, yeah, I know that for many consumption is a sin, but Spain needs its citizens to consume, if we create jobs. Why Americans eat so much? There are many reasons ... and you can not change the idiosyncrasies of a village in the overnight, but some data may help us think and present ideas. Try to draw on the "devil." A English
gasoline costing more than triple to an American. I fill my tank twice a week, five times a month, each tank is 60 €, ie 300 € a month, giving me € 3,600 per year. The 2,400 euros are paying more taxes than the state takes (for me among other things "free social services) and can come in handy to consume.
A does not pay U.S. income tax if their income is less than $ 3,000 a month. In Spain there are millions of people who earn less than 4,000 € a month and could facilitate their use, especially the mileuristas. A English
cost him his mobile phone rate double that of an American. Internet rates are three times more expensive (for a connection three times slower). If the market malfunction and true competition would have figured that my company would save about 4,000 telecom € per year. With those numbers could be generated among all English firms in many jobs (and companies improve their competitiveness, not only reducing costs but increasing the speed of Internet, for example). A English
electricity costing 80% more expensive than an American. Once again a market where competition is not working. And a country that seems not to give importance to its energy deficit and the high cost for us to import oil, gas and even nuclear power in France. A English
also cost of bank charges and maintenance of credit cards 80% more than an American.
has been given a boost to the English economy with aid for the purchase of cars, such aid being negligible, has shown that people, if they lower the prices of car buying. How to multiply that effect? A car that cost him a U.S. $ 10,000 (7,000 euros) into English it costs more than doubled. The difference lies not only in the dynamic U.S. market that generates a volume that does not need high margins to retailers (dealers). The real problem is taxes: between VAT and registration tax take a third of the value of the car. If we pay € 18,000 for a car, € 5,000 are tax. Not to mention car insurance: it costs an American half (as home insurance). Speaking
VAT: each pair of shoes, computer, clock, tennis racket or backpack for the child we bought cost us at least 10% more expensive than an American. They pay their "taxes" state (the part of tax that goes each state) that vary around 4%, and federal (Federal Government is left with a meager 2%). Compared to 6% we will soon pay 18% (three times). With this difference families could significantly increase their potential consumption. Not to mention taxes "special" on snuff and alcohol (not available in USA and Spain reach 320% more expensive product value)
But let's talk about direct taxes, in U.S. companies do not pay an equivalent IAE (Tax on Economic Activities), the vehicle's road tax we pay to finance the English municipalities not plugged in there (not to mention the fortune to be paid by the OTA in many English cities more expensive sometimes a private parking, while in many U.S. cities pay something called a "sticker" that enables them to park for one year in all cuests municipal car parks around 15 dollars annually, have you calculated what you pay for OTA by not? Speaking
municipalities: in USA no road tax, but do not pay this "invention" called IBI (Property Tax Property).
Speaking of the Autonomous Communities: Some keep the inheritance and gift tax (which does not exist in USA). P
clear ero, the English have to pay the salary of:
- 17 Autonomous Presidents. Many of them are followers of Chief of State: consultants, official car, driver, secretary ... A country with 45 million people has 17 Presidents! Some they "preside" territories with fewer inhabitants than a suburb of New York
- The 17 regional governments carry more than 300 "minitrillos" (each with its cohort of advisers, official car, driver, VISA card ...)
- The Central Government beyond the Ministers, has 200 CEOs and 2,000 advisors.
- And of course, parliamentary 1,600! Added to the 350 deputies in parliament and 300 senators, more than 2,250 people to manage a country of 45 million inhabitants! When increasing further the capacity lawmaker moves to Europe.
- What about the 9,000 mayors and 86,000 councilors?
We exceeded
3,000,000 of officials and public employees (one for every 15 inhabitants). In the United States have a staff member for every 145 inhabitants.
The data illustrated the comparison between the health "free" English and the "problem" U.S.. Aside from all the taxes we pay, Social Security takes away an average of 300 euros a month (and the company pays another 400 at least). That is, Social Security paid to 700 euros a month to give us that healing (the equivalent of $ 1,000 per month). Normal private health insurance (or Sanitas Igualatorio type) it costs about U.S. $ 5,000 a year (which are $ 400 per month). Or what is the same: we pay about 700 euros per month by the American Public Health about 300 euros. Although really through pay Social Security pensions. But again a comparison with pension plans demonstrate the inefficiency of the model.
Above all, we must not forget that the average U.S. salary is three times the English equivalent. Earn more and take away much less, result: they have more to spend. If we look at our reality: we enter the state bit and takes away too much, with little room we have to pay a mortgage, food, schools and clothing. This microscopic quantity that remains to make ends meet to eat "will serve to revive the economy? (After removing the 18% VAT, of course)
Enrique de la Rica, School of Business ESEUNE (http://www.eseune.edu) Evolutionary Blog (http://eseune.blogspot.com) 
