[lbo-talk] Social Spending

Wojtek S wsoko52 at gmail.com
Mon Sep 20 12:35:41 PDT 2010


[WS:] In the US, welfare and social services accounts for the whopping 5.7% of total government expenditure in 2009 up 1% from 4.5 in 1970.

Is it any lower in Germany?

Wojtek

On Mon, Sep 20, 2010 at 3:01 PM, Angelus Novus <fuerdenkommunismus at yahoo.com> wrote:
>
> Max Sawicky wrote:
>
>> My numbers and cite were for social spending.
>
> Yes, but social spending is a very broad term, and much of what is statistically
> counted as social spending in Germany is not assistance for the poor.
>
> For example, so-called "Elterngeld" ("parental money").  This was created by the
> previous government (CDU-SPD) and was the pet project of then family minister,
> now labour minister Ursula von der Leyen.  It replaced an older program called
> "Erziehungsgeld" ("child rearing money").  The innovation with "Elterngeld" was
> that it was specifically targeted to encourage upper class and upper
> middle-class women to have more babies, to counter the supposed demographic
> decline of ethnic Germans.  It is supposed to encourage these women to take a
> period of pause from high powered careers in order to reproduce the higher
> social classes.
>
> Because it was replacing Erziehungsgeld, Elterngeld was also payed to poor
> people.  If you were a Hartz IV recipient, you got 300 Euro Elterngeld not
> calculated against your Hartz IV.
>
> Now, as part of the austerity packet of the current government, Elterngeld for
> Hartz IV recipients is going to be abolished.  With the justification, of
> course, that people who don't work shouldn't be offered extra financial
> incentive to have children.  The original intent, you recall, was to encourage
> rich women to have more kids.  The problem, of course, is that Elterngeld is not
> just paid to rich career women, but also to rich housewives who have also never
> worked a day in their lives.
>
> So in effect, a subsidy for rich women to bear more children is "social
> spending", statistically speaking.
>
> That should illustrate sufficiently, I think, how much caution to exercise when
> talking about "social spending" in Germany as a broad category.
>
>
>
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