[lbo-talk] Social Spending

Max Sawicky sawicky at verizon.net
Mon Sep 20 13:05:14 PDT 2010


Thanks, this is useful. Of course there are analogs in the U.S. to the birther subsidies (more meager, to be sure). Middle class benefits are nothing to sneeze at, in and of themselves, but of course a person could have worse problems.

To me this all speaks to the classes, probably growing and certainly swelled in this recession, who live off the grid of middle-class and consistent work-conditioned benefits. One type of fallout from the '96 welfare reform was the increase in "deep poverty" (those below 50% of the official rate, which is no great shakes itself), people who fell out of the already-inadequate welfare system whose fate was unknown.

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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